Which of the following statements is true about the forecasting error measures?
A)Mean absolute deviation is complex and difficult to compute.
B)Cumulative sum error tracks the forecasting bias.
C)Mean absolute deviation provides the percentage of error.
D)Mean squared errors cannot track the accuracy of the forecast.

Question

Quizplus · Accepted Answer

Cumulative sum error (CSE) is a measure that tracks the forecasting bias or whether errors are consistently positive or negative. Mean absolute deviation (MAD) is a simpler and more straightforward measure that calculates the average absolute deviation between forecasted values and actual values. MAD does not provide a percentage of error. Mean squared errors (MSE) is a measure that calculates the average of the squared differences between forecasted values and actual values. However, MSE can track the accuracy of the forecast.

Which of the Following Statements Is True About the Forecasting