Question

Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.
Assertion (A): The numeric differences in the forecast of demand and actual demand is known as forecast error (e).
Reasons (R): Mean Absolute Deviation \((MAD) = \frac{Σ|e|}{n}\).
In the light of the above statements, choose the most appropriate answer from the options given below:

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
• B. Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)
• C. (A) is correct but (R) is not correct
• D. (A) is not correct but (R) is correct

Answer 1

The Correct Option is B

The correct option is (B): Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)