Knowee
Questions
Features
Study Tools

Use diagram below to answer question Periods: 1 2 3 4 5 Forecast: 20 20 30 20 25 Actual demand: 22 18 25 20 19 The Mean Absolute Deviation (MAD) for the data given is

Question

Use diagram below to answer question Periods: 1 2 3 4 5 Forecast: 20 20 30 20 25 Actual demand: 22 18 25 20 19 The Mean Absolute Deviation (MAD) for the data given is

🧐 Not the exact question you are looking for?Go ask a question

Solution

To calculate the Mean Absolute Deviation (MAD), you need to follow these steps:

  1. First, find the absolute deviation for each period. This is done by subtracting the forecast from the actual demand and taking the absolute value.

    For period 1: |22 - 20| = 2 For period 2: |18 - 20| = 2 For period 3: |25 - 30| = 5 For period 4: |20 - 20| = 0 For period 5: |19 - 25| = 6

  2. Next, add up all the absolute deviations: 2 + 2 + 5 + 0 + 6 = 15

  3. Finally, divide the sum of the absolute deviations by the number of periods to get the MAD.

    MAD = 15 / 5 = 3

So, the Mean Absolute Deviation (MAD) for the data given is 3.

This problem has been solved

Similar Questions

Given the forecast demand and actual demand for 10-feet fishing boats, compute the Mean Absolute Deviation (MAD) (answer correct to two decimal places).Year 1 2 3 4 5 6Forecast Demand (F) 78 75 83 84 88 85Actual Demand (A) 71 80 101 84 60 73

Company DIB observes the demand of product Z over 20 periods as follow:Period ActualDemand (units)Period ActualDemand (units)1 198 11 2002 175 12 1983 172 13 1954 194 14 2235 177 15 2026 186 16 1847 193 17 1678 196 18 1949 211 19 17010 205 20 159Assume the initial forecast is 200 units.Requirements:a) Plot a line chart* that covers 20 periods and consists of the following THREE (3) lines:The actual demand line (5 marks)The exponential smoothing forecast line with alpha = 0.2 (5 marks)The exponential smoothing forecast line with alpha = 0.8 (5 marks)*Suggestion: Use MS Excel to plot the line chart.b) Compute the Mean Absolute Deviation (MAD) for periods 1 to 20. Tabulate youranswers. (11 marks)c) Which smoothing constant produces a better forecast? Comment on your observation.(4 marks)Note: Keep your answers to ONE (1) decimal place.

Instructions: Use the tool provided 'AD1' to draw the new aggregate demand curve (plot 4 points total

Using the table below, graph the aggregate supply and demand curves and then answer three questions and graph an AD shift.  Real GDP (in $ Trillions)Price Level Supplied Demanded100 4 16110 10 15140 14 12200 15 6Instructions: Use the tools provided 'AS' and 'AD' to plot the aggregate supply and aggregate demand curves (plot 4 points total for each curve).

Graph the following aggregate demand (AD) and aggregate supply (AS) curves and then answer five questions about output and the price level.The following schedule provides information with which to draw both an aggregate demand curve and an aggregate supply curve. Both curves are assumed to be straight lines.Average Price (Dollars per Unit) Quantity Demanded (Units per Year) Quantity Supplied (Units per Year)$ 800 100 700700 200 600600 300 500500 400 400400 500 300300 600 200200 700 100Instructions: Use the tools provided 'AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 7 points total for each curve).

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.