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The document discusses using Mean Absolute Deviation (MAD) to measure forecast error by taking the average of the absolute values of the differences between actual and forecasted monthly sales. It provides an example dataset with the monthly sales forecast and error for 6 months. The MAD is then calculated as the average of the absolute errors, which in this example is 31.5.
The document discusses using Mean Absolute Deviation (MAD) to measure forecast error by taking the average of the absolute values of the differences between actual and forecasted monthly sales. It provides an example dataset with the monthly sales forecast and error for 6 months. The MAD is then calculated as the average of the absolute errors, which in this example is 31.5.
The document discusses using Mean Absolute Deviation (MAD) to measure forecast error by taking the average of the absolute values of the differences between actual and forecasted monthly sales. It provides an example dataset with the monthly sales forecast and error for 6 months. The MAD is then calculated as the average of the absolute errors, which in this example is 31.5.