The demand and forecast of an item for five months are given in the table. Month | Demand | Forecast April | 225 | 200 May | 220 | 240

The mean absolute deviation is 20
The mean absolute deviation is 25
The mean absolute deviation is 30
The mean absolute deviation is 35

Correct answer: The mean absolute deviation is 25

Solution

Mean absolute deviation is the average of absolute forecast errors. The question text is truncated, but the keyed answer indicates the intended MAD is 25.

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