When measuring a forecasting technique's performance among different currencies, it is often useful to examine the relative size of the discrepancies between the forecasted and realized values. Thus, percentages, rather than nominal amounts, are often used to measure forecast errors.

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When comparing forecast errors across different currencies, using percentages helps to standardize the measure and make it comparable across different nominal amounts. This is because a small absolute error may have a much greater impact on a smaller nominal amount, whereas the same percentage error on a larger nominal amount may have a smaller impact.

When Measuring a Forecasting Technique's Performance Among Different Currencies, It