Positive forecast errors,the case when the forecast is low relative to the actual value,are preferable to negative forecast errors,the case when the forecast is higher than the actual value

Question

Quizplus · Accepted Answer

Whether positive or negative forecast errors are preferable depends on the context and the consequences of underestimating or overestimating. Neither is inherently preferable without considering the specific implications of errors in a given situation.

Positive Forecast Errors,the Case When the Forecast Is Low Relative