Question

Consider the actual and forecast values contained in the table. What is the MAD of the forecast?

Actual	Forecast	Actual	Forecast
10	10.8	26	24.5
13	13.6	28	27.2
17	16.3	29	29.9
19	19	32	32.6
22	21.7	35	35.3

Answer 1

Solution:

We have to find MAD of the forecast.

That is: Mean Absolute Deviation of the forecast.

Formula:

A_t = Actual values and F_t = Forecasted values.

Thus

Actual	Forecast	Calculations:	|At -Ft|
10	10.8	=| 10-10.8 |=	0.8
13	13.6	=| 13-13.6 |=	0.6
17	16.3	=| 17-16.3 |=	0.7
19	19	=| 19-19 |=	0
22	21.7	=| 22-21.7 |=	0.3
26	24.5	=| 26-24.5 |=	1.5
28	27.2	=| 28-27.2 |=	0.8
29	29.9	=| 29-29.9 |=	0.9
32	32.6	=| 32-32.6 |=	0.6
35	35.3	=| 35-35.3 |=	0.3

Thus