Question: For sales data given below, the three month Moving Average method was used to generate forecasts. The deviations are shown below: Month Actual Sales (A)

For sales data given below, the three month Moving Average method was used to generate forecasts. The deviations are shown below:

Month Actual Sales (A) Forecast Sales (F) Deviation = (A-F)

June 10 ---

July 12 ---

August 11 ---

September 25 11 14

October 15 16 -1

November 8 17 -9

What is the Mean Absolute Deviation MAD?

a.

(11+16+17)/3 = 44/3
b.

14+1+9 = 24
c.

(14-1-9)/3 = 4/3
d.

(14+1+9)/3 = 8

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