Given Forecast Errors of -1,4,8,and -3,what Is the Mean Absolute

question 7

Multiple Choice

Given forecast errors of -1,4,8,and -3,what is the mean absolute deviation?

• A)2
• B)3
• C)4
• D)8
• E)16

---

Definitions:

Erosion

The portion of cash flows of a new project that come at the expense of a firm’s existing operations.

Incremental

Refers to the additional changes in costs or revenues that result from a business decision.

Capital Budgeting

The process used by companies to evaluate and select long-term investments that are expected to yield the highest returns over time.

Cash Flows

The comprehensive total of funds circulating in and out of a business, markedly affecting its ability to liquidate assets.