In case of forecasts, the root mean squared error is the:
A)average of the forecast errors divided by the variance of the errors.
B)average of the absolute forecast errors.
C)standard deviation of the forecast errors without any degrees of freedom adjustment.
D)standard deviation of the forecast errors with a degrees of freedom adjustment.

Question

Quizplus · Accepted Answer

The root mean squared error (RMSE) is essentially the standard deviation of the forecast errors without any degrees of freedom adjustment. It measures the square root of the average squared differences between the forecasted and actual values.

In Case of Forecasts, the Root Mean Squared Error Is