To assess the adequacy of a forecasting model,one measure that is often used is the
A)quadratic trend analysis
B)mean absolute deviation
C)exponential smoothing
D)moving averages

Question

Quizplus · Accepted Answer

Mean absolute deviation (MAD) measures the average difference between the forecasted and actual values. A lower MAD indicates a more accurate forecasting model, making it a good measure to assess adequacy of a model. The other options listed are forecasting methods, not measures of adequacy.

To Assess the Adequacy of a Forecasting Model,one Measure That