Silicon ltd has forecasted the Canadian dollar for the most recent period to be £0.47. The realized value of the Canadian dollar in the most recent period was £0.45. Thus, the absolute forecast error as a percentage of the realized value was ____% to the nearest 1/10th %.

Question

Quizplus · Accepted Answer

The absolute forecast error is the absolute value of the difference between the forecasted value and the realized value. In this case, the absolute forecast error is |0.47 - 0.45| = 0.02. The absolute forecast error as a percentage of the realized value is (0.02 / 0.45) * 100% = 4.4%.

Silicon Ltd Has Forecasted the Canadian Dollar for the Most