Which of the following is true of squared forecast errors?
A)An error of +2 yields a greater loss than an error of −2.
B)An error of −2 yields a greater loss than an error of +2.
C)An error of −2 or +2 yields the same loss.
D)Loss from positive and negative forecast errors cannot be compared.

Question

Quizplus · Accepted Answer

Squared forecast errors treat both positive and negative errors the same way, resulting in the same loss for an error of −2 or +2, as squaring any number (positive or negative) results in a positive value.

Which of the Following Is True of Squared Forecast Errors