Given Forecast Errors of 6, 4, 0 and -2, What

question 76

Multiple Choice

Given forecast errors of 6, 4, 0 and -2, what is the mean absolute deviation?

• A) 2
• B) 3
• C) 4
• D) 2.67
• E) none of the above

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Definitions:

Inadvertently Overstated

When financial figures are unintentionally reported higher than their actual values.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business assets.

Falling Prices

A situation where the general level of prices of goods and services in an economy is decreasing over time.