Question

The following data are available for the demand for a piece that is manufactured as a part of a larger product.

                        Week              Demand
                           1                        10
                           2                        13
                           3                        12
                           4                        11
                           5                        17
                           6                        15
                           7                        13
                           8                        12

Using the same values for alpha and the seed, the Sum of Absolute Deviations (SAD), (or SAE), is:

Based on your answer above, the Mean Absolute Deviation (MAD), (or MAE), to two decimal places, is:

Answer 1

Solution :--

The formulsa for Sum of Absolute Deviation is (SAD),

and The Formula for Mean Absolute Deviation ( MAD )

Calculation table :-

Week	Demand	Demand - mean	|Demand-mean|
1	10	-2.875	2.875
2	13	0.125	0.125
3	12	-0.875	0.875
4	11	-1.875	1.875
5	17	4.125	4.125
6	15	2.125	2.125
7	13	0.125	0.125
8	12	-0.875	0.875
	103		13

Sum Absolute Deviation is

Sum of Absolute Mean Deviation (SAD) = 13

and

Mean Absolute Deviation is ,

Mean Absolute Deviation (MAD) = 1.625