Which method would you recommend to your statistics professor in selecting the appropriate forecasting model if avoiding large errors is extremely important to him or her?
A) Mean absolute deviation (MAD)
B) Mean square error (MSE)
C) Either A or B
D) Neither A nor B

Question

Quizplus · Accepted Answer

Mean square error (MSE) is a more sensitive measure of accuracy compared to mean absolute deviation (MAD) as it weights larger errors more heavily. This makes it a better choice when avoiding large errors is extremely important. Therefore, B) Mean square error (MSE) is the best choice.

Which Method Would You Recommend to Your Statistics Professor in Selecting