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Identify the Formula Used to Calculate the Root Mean Square =t=1nAtFtn =\sqrt{\frac{\sum_{t=1}^{n}\left|A_{t}-F_{t}\right|}{n}}

Question 14

Multiple Choice

Identify the formula used to calculate the root mean square error over a range of forecasted values, if the actual value of the time series at time t and the forecast value for time t are denoted by At and Ft respectively.


A) RMSE =t=1nAtFtn =\sqrt{\frac{\sum_{t=1}^{n}\left|A_{t}-F_{t}\right|}{n}}

B) RMSE =t=1nAtFtn =\sqrt{\frac{\sum_{t=1}^{n} \sqrt{\left|A_{t}-F_{t}\right|}}{n}}

C) RMSE =t=1n(λtFt) 2n =\sqrt{\frac{\sum_{t=1}^{n}\left(\lambda t-F_{t}\right) ^{2}}{n}}

D) RMSE =t=1nAt+Ft2n =\sqrt{\frac{\sum_{t=1}^{n}\left|\frac{A_{t}+F_{t}}{2}\right|}{n}}

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