In selecting an appropriate forecasting model,which of the following approaches is suggested?
A) Measure the size of the forecasting error
B) Use the principle of parsimony
C) Perform a residual analysis
D) All of the above

Question

Quizplus · Accepted Answer

It is recommended to use all of the above approaches in selecting an appropriate forecasting model. Measuring the size of the forecasting error helps to determine the accuracy of the model, while using the principle of parsimony guides towards selecting the simplest model that meets the required level of accuracy. Performing a residual analysis helps to identify any patterns or errors in the model's predictions. Therefore, using all of these approaches can lead to a more informed and robust selection of the best forecasting model.

In Selecting an Appropriate Forecasting Model,which of the Following Approaches