The forecaster who uses MSD (mean squared deviations) to measure the effectiveness of forecasting methods would prefer method 1, which results in several smaller forecast errors, to method 2, which results in one large forecast error equal to the sum of the absolute values of several small forecast errors given by method 1.

Question

Quizplus · Accepted Answer

Because method 1 results in smaller errors, thus having a smaller MSD.

The Forecaster Who Uses MSD (Mean Squared Deviations) to Measure