Which of the following methods tells whether the forecast tends to be too high or too low?
A)MAD
B)MSE
C)MAPE
D)bias

Question

Quizplus · Accepted Answer

The bias method tells us whether the forecast tends to be too high or too low by providing a measure of the forecast's tendency to overestimate or underestimate the actual values. A negative bias indicates that the forecast tends to underestimate the actual values, while a positive bias indicates that the forecast tends to overestimate the actual values. The MAD, MSE, and MAPE methods provide measures of the forecast's accuracy, but do not directly indicate if the forecast tends to be too high or too low.

Which of the Following Methods Tells Whether the Forecast Tends