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

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 E)bias
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Question

Quizplus · Accepted Answer

MSE (Mean Squared Error) squares the forecast errors, which means that larger errors are penalized more heavily compared to other methods like MAD or MAPE.

Which of the Following Methods Produces a Particularly Stiff Penalty