Which of the Following Is a Drawback of Mean Absolute

question 91

Multiple Choice

Which of the following is a drawback of mean absolute deviation (MAD) ?

• A)There is no information about the forecasting bias.
• B)The cancellation of the positive and negative forecast errors can distort the information.
• C)Large errors tend to be magnified because they are squared.
• D)It is very complex to calculate.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights, such as voting on corporate matters.

Debtors

Individuals or entities that owe money to another entity, typically referring to those owing money as recorded by the creditor.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting to be repaid in the future, often with interest.

Corporation

A legal entity that is separate and distinct from its owners, with the ability to own property, incur liabilities, and conduct business activities.