The most commonly used measures of forecast accuracy are the:
A)mean absolute deviation and the sum of squares for forecast errors.
B)sum of squares for forecast error and seasonal indexes.
C)seasonal indexes and the percentage of trend.
D)All of these choices are correct.

Question

Quizplus · Accepted Answer

The mean absolute deviation (MAD) and the sum of squares for forecast errors (SSE) are both popular measures of forecast accuracy because they are easy to understand and interpret. MAD measures the average absolute deviation of forecast errors from actual data points, while SSE measures the total of squared forecast errors. Both give a good indication of overall forecast accuracy and can be used to compare the accuracy of different forecasting methods. Seasonal indexes and percentage of trend are also useful measures for certain types of analyses, but are not as commonly used as MAD and SSE.

The Most Commonly Used Measures of Forecast Accuracy Are The