Consider the Following Forecast Errors A)1
B)1

question 27

Multiple Choice

Consider the following forecast errors.What is the Mean Absolute Deviation (MAD) ?
$$\begin{array} { | c | c | } \hline \text { Period } & \text { Error } \\\hline 1 & - 2 \\\hline 2 & 1 \\\hline 3 & 3 \\\hline 4 & 0 \\\hline 5 & - 1 \\\hline 6 & 2 \\\hline 7 & 4 \\\hline\end{array}$$

• A)1
• B)1.86
• C)7
• D)13
• E)5

---

Definitions:

Normally Distributed

Describes a statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Operational Decision

Decisions made to manage day-to-day activities of an organization, affecting its efficiency and effectiveness.

Supply Chain

The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.