Based on the actual and forecasted returns shown below what

Based on the actual and forecasted returns shown below, what is the MAD?

Solution

MAD=absolute difference of ( monthly return - forecast )/n

here n=6

so MAD= 0.507

and answer is C

Monthly return	Forecast	Absoulute difference
2.2	1.95	0.25
2.5	2.21	0.29
1.8	2.35	0.55
1.4	2.15	0.75
1.1	1.6	0.5
1.9	1.2	0.7
	total	3.04
	MAD	0.506666667