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Unformatted text preview: given in Problem 4.10. To begin the procedure, assume that the forecast for year 1 was 5,000 people signing up. 1 2 3 4 5 6 7 8 9 10 11 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Forecasted Registrations Registrations Forecast Year Registrations Chapter 4: Problem 4.11b What is MAD? Answer: MAD= n Source: Render, Jay Heizer and Barry. Operations Management, 10th Edition. Pearson p.113 Mean Absolute Devation (MAD) is a measure of the overall forecast error for a model. This value is computed by taking the sum of the absolute values of the individual forecast errors (deviations) and dividing by the number of periods of data (n): Σ|Actual − Forecast|...
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- Spring '12
- individual forecast errors