Concept explainers
Interpretation: The mean error of the HR department’s
Concept Introduction: The following formula will be used:
Answer to Problem 1.1Q
Mean error = 0.81530
Mean absolute deviation = 1.7
Mean absolute percent error = 21.88%
Explanation of Solution
The following formula will be used to calculate the mean for HR department’s forecast −
Actual attendance = 95
Total session = 10
Therefore,
The difference between actual attendance and mean attendance results the deviation from actual value.
12.25 | |
0.25 | |
6.25 | |
6.25 | |
2.25 | |
2.25 | |
0.25 | |
0.25 | |
30.25 | |
6.25 | |
Summation | 66.5 |
The standard deviation can be calculated as −
The following method will be used to calculate the standard error −
Mean absolute deviation can be calculated as −
error | |
3 | |
0 | |
2 | |
2 | |
-2 | |
1 | |
-1 | |
-1 | |
-6 | |
-3 | |
Summation | 17 |
The following formula will be used to calculate the mean absolute error for each component −
Therefore,
Actual attendance | error | |
13 | 3 | |
10 | 0 | |
12 | 2 | |
12 | 2 | |
8 | -2 | |
11 | 1 | |
9 | -1 | |
9 | -1 | |
4 | -6 | |
7 | -3 | |
Summation |
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Chapter 4 Solutions
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