A Forecasting Method Has Produced the Following Over the Past

question 92

Multiple Choice

A forecasting method has produced the following over the past five months. What is the mean absolute deviation? $$\begin{array} { | c | c | c | c | } \hline \text { Actual } & \text { Forecast } & \text { Error } & \mid \text { Error } \mid \\\hline 10 & 11 & - 1 & 1 \\\hline 8 & 10 & - 2 & 2 \\\hline 10 & 8 & 2 & 2 \\\hline 6 & 6 & 0 & 0 \\\hline 9 & 8 & 1 & 1 \\\hline\end{array}$$

• A) -0.2
• B) -1.0
• C) 0.0
• D) 1.2
• E) 8.6

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Definitions:

Inventory Turnover

A metric that measures how many times a company's inventory is sold and replaced over a specified period.

Total Current Assets

The sum of all assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Common Stock

A type of security representing ownership in a corporation, giving holders a share of the company’s profits via dividends.

Additional Assets

Assets acquired by a company beyond its existing assets, often to expand operations or diversify holdings.