Which of the following is not an accurate statement concerning bias in forecasts?
A)Bias is calculated based on the mean absolute percent error (MAPE).
B)Persistent negative bias implies forecasting frequently overstating actual values.
C)Bias is the sum of forecast errors.
D)Persistent positive bias implies frequently underestimating actual values.
E)Bias may indicate a shift in the demand pattern.

Question

Quizplus · Accepted Answer

Bias is not calculated based on the mean absolute percent error (MAPE). MAPE is used to evaluate the accuracy of forecasts but does not directly measure bias. Bias is calculated as the difference between actual values and forecast values, and can be positive (indicating consistently underestimated values) or negative (indicating consistently overestimated values).

Which of the Following Is Not an Accurate Statement Concerning