In selecting an appropriate forecasting model,which of the following approaches are suggested?
A)Measure the size of the forecasting error.
B)Use the principle of parsimony.
C)Perform a residual analysis.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the above approaches are suggested for selecting an appropriate forecasting model. 
Measuring the size of the forecasting error helps in evaluating the accuracy of the model. 
Using the principle of parsimony suggests selecting the simplest model that explains the data adequately. 
Performing a residual analysis helps in identifying any patterns or biases in the model, and suggests corrective measures. Therefore, it is recommended to use all these approaches to select an appropriate forecasting model.

In Selecting an Appropriate Forecasting Model,which of the Following Approaches