The forecast error is the difference between
A)this period's value and the next period's value.
B)the average value and the expected value of the response variable.
C)the explanatory variable value and the response variable value.
D)the actual value and the forecast value.

Question

Quizplus · Accepted Answer

The forecast error is calculated as the difference between the actual value and the forecast value, which is used to measure the accuracy of forecasts.

The Forecast Error Is the Difference Between