A Forecasting Method Has Produced the Following Over the Past

question 76

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

---

Definitions:

Revenues

Increases in assets from performing services or delivering products to customers.

Expenses

Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.

Miscellaneous Expense

Minor or incidental expenses that do not fit into other specific categories within an organization's financial accounting.

Adjusted Trial Balance

A list of all accounts and their adjusted balances after journal errors have been corrected and adjustment entries made, used to prepare financial statements.