The Primary Purpose of the Mean Absolute Deviation (MAD) in Forecasting

question 25

Multiple Choice

The primary purpose of the mean absolute deviation (MAD) in forecasting is to

• A) estimate the trend line
• B) eliminate forecast errors
• C) measure forecast accuracy
• D) seasonally adjust the forecast
• E) all of the above

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Definitions:

Back-arc Basin

A geological feature located behind a volcanic arc, formed by the stretching and sinking of an oceanic plate.

Trench

Long, narrow, and deep depressions on the ocean floor, often occurring at the boundaries between tectonic plates.

Philippine Sea

A section of the western Pacific Ocean east of the Philippines, notable for its depth and marine biodiversity.

Island Arc

A chain of volcanic islands that form along a convergent tectonic plate boundary, typically where an oceanic plate subducts beneath another oceanic plate.