Which one of the following is most useful for measuring the bias in a forecast?
A) cumulative sum of forecast errors
B) standard deviation of forecast errors
C) percentage forecast error in period t
D) mean absolute deviation of forecast errors

Question

Quizplus · Accepted Answer

The cumulative sum of forecast errors (CFE) is most useful for measuring bias because it indicates whether forecasts are consistently over or under the actual values over time.

Which One of the Following Is Most Useful for Measuring