Which one of the following is most useful for measuring the bias in a forecast?
A) cumulative sum of forecast errors
B) standard deviation of forecast errors
C) mean absolute deviation of forecast errors
D) percentage forecast error in period t

Question

Quizplus · Accepted Answer

The cumulative sum of forecast errors is most useful for measuring the bias in a forecast because it shows whether the forecast errors are consistently positive or negative over time, indicating a systematic overestimation or underestimation.

Which One of the Following Is Most Useful for Measuring