The ______ is the average of the sum of the squared differences between the actual and the forecasted demand values.
A)mean squared error (MSE)
B)mean absolute deviation (MAD)
C)mean absolute percentage error (MAPE)
D)cumulative sum error (CSE)

Question

Quizplus · Accepted Answer

The mean squared error (MSE) measures the average of the squared differences between the actual and forecasted demand values. It is a commonly used measure of forecasting accuracy. MAD and MAPE are alternative measures of forecasting accuracy, but they do not involve squaring the differences between actual and forecasted values. CSE is not a commonly used measure of forecasting accuracy.

The ______ Is the Average of the Sum of the Squared