The measures of accuracy of the forecasts:
A) check how well a particular forecasting method is able to reproduce the time series data that are already available.
B) use the current value to estimate how well the model generates previous values correctly.
C) predict the future values and wait for a pre-defined time period to examine how accurate the predictions were.
D) check to see if the forecast error is negative.

Question

Quizplus · Accepted Answer

Measures of forecast accuracy are used to determine how well a particular forecasting method is able to reproduce the time series data that are already available. By selecting the method that is most accurate for the data already known, we hope to increase the likelihood that we will obtain more accurate forecasts for future time periods.

The Measures of Accuracy of the Forecasts