Since May of 2005, the purchase manager at a department store has been using a 4

Question

Since May of 2005, the purchase manager at a department store has been using a 4-period moving average to forecast sales in upcoming months. Sales data for the months of January through July are given in the table below.

Month

Sales

Jan

65

Feb

65

Mar

41

Apr

50

May

63

Jun

38

Jul

72

Compute the mean absolute deviation (MAD) for the four-period moving average forecasts. The forecast values are calculated with an accuracy of two decimal digits. Specify the MAD as a whole number by rounding.

Month

Sales

Jan

65

Feb

65

Mar

41

Apr

50

May

63

Jun

38

Jul

72

Explanation / Answer

Hi,

Please find the answer as follows:

Median = 65

x x-med abs 38 -27 27 41 -24 24 50 -15 15 63 -2 2 65 0 0 65 0 0 72 7 7
Sum 75
MAD (75/7) = 10.71

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