Mean Absolute Error and Deviation Concepts

This video tutorial covers the calculation of moving averages and various error measures in forecasting. It explains how to compute 3-week moving averages and forecast for week 8 using historical sales data. The video also details the calculation of forecast errors, Mean Absolute Deviation (MAD), Mean Squared Error (MSE), and Mean Absolute Percent Error (MAPE). Each error measure is explained with step-by-step calculations, providing a comprehensive understanding of forecasting techniques.

What is the primary focus of this video tutorial?

• Exploring data visualization techniques

• Learning about financial forecasting

• Calculating moving averages and error measures

• Understanding sales trends

What is the duration of the historical sales data used in the video?

• 5 weeks

• 6 weeks

• 8 weeks

• 7 weeks

How is the moving average for week 4 calculated?

• By averaging sales of weeks 3, 4, and 5

• By averaging sales of weeks 4, 5, and 6

• By averaging sales of weeks 2, 3, and 4

• By averaging sales of weeks 1, 2, and 3

What is the moving average forecast for week 8?

• 42

• 40

• 39

• 41

How are forecast errors calculated?

• By dividing forecast values by actual values

• By multiplying forecast values with actual values

• By adding forecast values to actual values

• By subtracting forecast values from actual values

What is the error for week 5?

• -3

• 2

• 4

• -5

What does the Mean Absolute Deviation (MAD) represent?

• The average of forecast values

• The average of percentage errors

• The average of squared errors

• The average of absolute errors

What is the Mean Absolute Deviation (MAD) calculated in the video?

• 4.5

• 6.5

• 3.5

• 5.5

How is the Mean Squared Error (MSE) calculated?

• By averaging the squared errors

• By averaging the absolute errors

• By averaging the percentage errors

• By averaging the forecast values

What is the Mean Squared Error (MSE) calculated in the video?

• 12.5

• 13.5

• 15.5

• 14.5