EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 9781478628385
Author: Olsen
Publisher: WAVELAND PRESS (ECONTENT)
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Chapter 2.9, Problem 36P
Summary Introduction

To calculate: MAD and MSE of actual given data and forecasted data and to check accuracy of the forecasted data.

Mean absolute deviation

MAD is calculated by the division of sum of absolute deviations and number of observations. Here, absolute deviations are calculated by deducting the forecasted data from the actual data.

Mean squared error

MSE is calculated by the division of sum of square of deviations and number of observations. Here, deviations are calculated by deducting estimated data from the actual data.

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