Certified Production & Operations Manager (POM) 2025 – 400 Free Practice Questions to Pass the Exam

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Given forecast errors of 5, 0, -4, and 3, what is the mean absolute deviation?

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To find the mean absolute deviation (MAD), one must first calculate the absolute value of each forecast error. The given forecast errors are 5, 0, -4, and 3.

Calculating the absolute values:

- The absolute value of 5 is 5.

- The absolute value of 0 is 0.

- The absolute value of -4 is 4.

- The absolute value of 3 is 3.

Now, sum these absolute values:

5 + 0 + 4 + 3 = 12.

Next, to find the mean absolute deviation, divide this total by the number of errors. There are four errors, so we divide 12 by 4:

12 / 4 = 3.

Thus, the mean absolute deviation is 3. This calculation highlights the average magnitude of the forecast errors, providing a measure of forecasting accuracy. The correct answer reflects the proper method for determining the mean absolute deviation by taking the average of the absolute errors.

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