A method to measure how well predictions fit actual data is
A)decomposition
B)smoothing
C)tracking signal
D)regression

Question

Quizplus · Accepted Answer

The tracking signal measures the cumulative deviation between actual and predicted values over time. A tracking signal of zero indicates that the forecasting method is accurate, while a non-zero tracking signal suggests that the forecast has consistently over- or under-predicted sales. Decomposition, smoothing, and regression are techniques used to generate forecasts and do not directly measure how well those forecasts fit actual data.

A Method to Measure How Well Predictions Fit Actual Data