Silicon Co. has forecasted the Canadian dollar for the most recent period to be $0.73. The realized value of the Canadian dollar in the most recent period was $0.80. Thus, the absolute forecast error as a percentage of the realized value was ____%.

Question

Quizplus · Accepted Answer

Absolute forecast error as a percentage of the realized value = |(forecasted value - realized value) / realized value| * 100%
= |(0.73 - 0.8) / 0.8| * 100%
= 8.75%
So the closest option is C) 8.8%.