Which of the following methods produces a particularly stiff penalty in periods with large forecast errors?
A)MAD
B)MSE
C)MAPE
D)decomposition

Name: Which of the following methods produces a particularly stiff penalty in periods with large forecast errors? A)MAD B)MSE C)MAPE D)decomposition
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Question

Quizplus · Accepted Answer

MSE (Mean Squared Error) produces a particularly stiff penalty for large forecast errors because it squares the errors before averaging them, thus giving more weight to larger errors compared to smaller ones.

Which of the Following Methods Produces a Particularly Stiff Penalty