The difference between actual demand and the forecast is:
A)Forecast error
B)Mean absolute percentage error
C)Absolute deviation of forecast error
D)Mean absolute deviation of forecast error

Question

Quizplus · Accepted Answer

The difference between actual demand and the forecast is known as the forecast error. Therefore, option A is the correct choice. Mean absolute percentage error (B) and mean absolute deviation of forecast error (D) are metrics used to determine the accuracy of a forecast and are not the correct answer to this question. Option C, absolute deviation of forecast error, is not a defined metric in forecasting.

The Difference Between Actual Demand and the Forecast Is