QUESTION $24$

$(4$ Marks$)$

Using the forecasts for the $2015-2023$ period, calculate the mean absolute deviation $($MAD$)$ for Forecast $1,$ Forecast $2$ and Forecast $3.$

A$.$ The MAD for Forecast $1,$ Forecast $2,$ and Forecast $3$ are $10\mathrm{.}85$ million, $8\mathrm{.}72$ million, and $9\mathrm{.}27$ million, respectively.

B$.$ The MAD for Forecast $1,$ Forecast $2,$ and Forecast $3$ are $10\mathrm{.}85$ million, $10\mathrm{.}23$ million and $8\mathrm{.}72$ million, respectively.

C$.$ The MAD for Forecast $1,$ Forecast $2,$ and Forecast $3$ are $10\mathrm{.}23$ million, $8\mathrm{.}72$ million, and $9\mathrm{.}27$ respectively.

D$.$ The MAD for Forecast $1,$ Forecast $2,$ and Forecast $3$ are $10\mathrm{.}23$ million, $9\mathrm{.}27$ million, and $10\mathrm{.}85$ million, respectively.

QUESTION $25$

$(4$ Marks$)$

Based on the mean absolute deviation $($MAD$)$ calculated for Forecast $1,$ Forecast $2,$ and Forecast $3,$ which of the following statements is correct?

A$.$ The analyst's choice of a high smoothing constant