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A product has a forecast of 200 units a month. The actual demand for the past 6 months has been 195, 210, 205, 190, 220, and 225. Which of the following values reflects the mean absolute deviation for this data?
Suggested Answer: B
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30 comments · newest first
VA
Vallie
10 months ago
Wait, how can it be 45? That seems way off.
ZA
Zack
10 months ago
I think the MAD is around 12.5, seems right.
CA
Caitlin
10 months ago
Just did the math, and it looks like 7.5 is incorrect.
CA
Carey
10 months ago
Totally agree, 12.5 makes sense based on those numbers!
KE
Keva
11 months ago
The actual demands are pretty close to the forecast.
GE
Georgeanna
11 months ago
I vaguely recall that we need to subtract the forecast from each actual demand, then average those absolute values. I hope I can get the right answer!
KA
Karl
11 months ago
I feel like the actual demand numbers are pretty close to the forecast, so the MAD shouldn't be too high, but I can't remember the exact calculation steps.
MI
Misty
11 months ago
I think we did a similar question in practice where we had to find the average deviation from the forecast. I hope I can apply that here.
CR
Cristy
11 months ago
I remember we calculated mean absolute deviation in class, but I'm not sure if I got the formula right.
LO
Loren
12 months ago
Hmm, I'm not sure I'm following. Let me re-read the question and think this through step-by-step.
AN
Andra
12 months ago
No problem, I've got this. I'll just take the absolute value of the difference between each actual demand and the forecast, add them up, and divide by the number of data points.
GL
Glory
12 months ago
Wait, what's the mean absolute deviation again? I'm a little fuzzy on that concept.
HA
Halina
1 year ago
Okay, I think I can handle this. I just need to calculate the mean absolute deviation from the actual demand data and the forecast.
GL
Gladis
1 year ago
Haha, mean absolute deviation? More like mean absolute head-scratching! But seriously, gotta go with B) on this one. Anything higher and the warehouse is gonna need a bigger storage unit.
IN
India
1 year ago
This one's a tricky one, but I'm feeling confident with B) 12.5. Anything higher than that and the supply chain team is really dropping the ball, am I right?
JI
Jill
1 year ago
I think B) 12.5 is the correct answer.
KR
Kris
1 year ago
Ah, the good old mean absolute deviation. I bet it's gonna be a close one between B) and C). Gotta really crunch those numbers, you know?
AL
Alberto
1 year ago
I think the answer is B) 12.5
BU
Bulah
1 year ago
Wait, isn't the mean absolute deviation supposed to be the average of the absolute differences between the actual and forecast values? I'm going with B) 12.5.
DA
Daniela
1 year ago
Yes, the mean absolute deviation is calculated by finding the average of the absolute differences. B) 12.5 is the most accurate option.
OZ
Ozell
1 year ago
I agree, B) 12.5 makes sense for the mean absolute deviation in this case.
SH
Sheron
1 year ago
I think you're right, the mean absolute deviation is the average of the absolute differences. B) 12.5 seems like the correct choice.
AP
Apolonia
1 year ago
I calculated it and I also got A) 7.5 as the mean absolute deviation
RO
Ronald
1 year ago
I'm not sure, but I think it might be B) 12.5
AN
Andra
1 year ago
I agree with Viva, the mean absolute deviation seems to be around 7.5
VI
Viva
1 year ago
I think the answer is A) 7.5
DE
Dean
1 year ago
Hmm, let's see... I think the mean absolute deviation is 12.5. The numbers are all pretty close to the forecast, so it can't be too high.
NO
Noe
1 year ago
A: So, we both think the mean absolute deviation is 12.5 then.
CE
Celia
1 year ago
B: Yeah, I agree. It can't be too high with those values.
EL
Eladia
1 year ago
A: I think it's 12.5 too. The numbers are all pretty close to the forecast.