Sales of quilt covers at bud​ banis's discount department store in carbondale over the past year are shown below. management prepared a forecast using a combination of exponential smoothing and its collective judgment for the 4 months​ (march, april,​ may, and​ june):

The MAD is 15.50

Explanation:

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MAD for forecast

MAD refers to mean absolute deviation.

MAD determines the forecasted value of the demand from the actual demand.

MAD is described as a mean deviation for every period in absolute terms.

The MAD is calculated as follow

Month ____ Sales Units ___ Forcasted Value ____ Absolute deviation

____________ X _____________ Y ______________ |X – Y|  

March _____ 101 units _______ 120 units __________ 19 units

April ______ 96 units ________114 units ___________18 units

May _______89 units ________112 units ___________23 units

June______ 108 units ________110 units ___________2 units

Total absolute Deviation ________________________ 62 units

Calculate the Mean of absolute Deviation as follow

Mean of absolute Deviation as follow = Total absolute Deviation / Numbers of months

Mean of absolute Deviation as follow = 62 units / 4 months

Mean of absolute Deviation as follow = 15.50 per month

Mean of absolute Deviation as follow = 15.50

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