Armed only with his fingers, the owner decides that the safest forecasting approach is a linear trend line. Generate a forecast for the year using this technique and then calculate forecast errors using MAPD
What is the mean absolute deviation for this forecasting approach?
A) 3.33%
B) 2.17%
C) 2.82%
D) 4.29%
Answer: D
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Indicate whether the statement is true or false