Final answer:
The Mean Absolute Deviation (MAD) is a statistical measure used to measure forecast accuracy and eliminate forecast errors.
Step-by-step explanation:
MAD, or Mean Absolute Deviation, is a statistical measure used to quantify the dispersion or variability of a set of data points. It can be calculated as the average of the absolute differences between each data point and the mean of the data set. MAD is commonly used to measure forecast accuracy and eliminate forecast errors in various fields, including economics and finance.
For example, in finance, MAD can be used to evaluate the accuracy of a stock price forecast by comparing the predicted price to the actual price. A smaller MAD indicates a more accurate forecast, while a larger MAD suggests a less accurate forecast.
Therefore, the correct answer to the question is C. MAD is primarily used to measure forecast accuracy and eliminate forecast errors.