Which of the following is true of squared forecast errors?
A)An error of +4 yields a greater loss than an error of -4.
B)An error of -4 yields a greater loss than an error of +4.
C)An error of -4 or +4 yields the same loss.
D)Loss from positive and negative forecast errors cannot be compared.

Question

Quizplus · Accepted Answer

Squared forecast errors treat positive and negative errors equally, as squaring removes the sign, so errors of +4 and -4 yield the same loss.

Which of the Following Is True of Squared Forecast Errors