Math Problem Statement

Evaluate a seasonally adjusted trend forecasting model. What is the MAD? (Round your answers to 3 decimal places.) Period Month-Year Month Sales ($ Million) Trend Index Forecast Absolute Error 1 Jan-2017 1 35,630 2 Feb-2017 2 33,972 3 Mar-2017 3 38,622 4 Apr-2017 4 38,973 5 May-2017 5 40,739 6 Jun-2017 6 40,009 7 Jul-2017 7 39,797 8 Aug-2017 8 41,217 9 Sep-2017 9 41,346 10 Oct-2017 10 41,717 11 Nov-2017 11 40,186 12 Dec-2017 12 40,046 13 Jan-2018 1 39,223 14 Feb-2018 2 37,377 15 Mar-2018 3 42,648 16 Apr-2018 4 43,109 17 May-2018 5 48,049 18 Jun-2018 6 47,546 19 Jul-2018 7 47,991 20 Aug-2018 8 48,833 21 Sep-2018 9 45,585 22 Oct-2018 10 48,342 23 Nov-2018 11 43,239 24 Dec-2018 12 39,626 MAD=

Solution

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Math Problem Analysis

Mathematical Concepts

Seasonal Trend Forecasting
Mean Absolute Deviation (MAD)
Seasonal Indices
Forecasting Error Calculation

Formulas

Absolute Error = |Actual Sales - Forecast|
MAD = (Sum of Absolute Errors) / n

Theorems

Mean Absolute Deviation (MAD) Calculation

Suitable Grade Level

Grades 11-12 or College-level