The Primary Purpose of the Mean Absolute Deviation (MAD) in Forecasting

question 135

Multiple Choice

The primary purpose of the mean absolute deviation (MAD) in forecasting is to:

• A) estimate the trend line.
• B) eliminate forecast errors.
• C) measure forecast accuracy.
• D) seasonally adjust the forecast.
• E) remove random variations.

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Definitions:

Simplify

The process of reducing an expression to its simplest or most basic form, often by combining like terms or applying algebraic rules.

Synthetic Division

A shortcut method for polynomial division, especially when dividing by a linear factor, and separating the coefficients.

Rectangle Area

The area of a rectangle is calculated by multiplying its length by its width.

Width

Width refers to the measurement or extent of something from side to side; in geometry, it is often used to describe the shorter side of a rectangle.