Which of the following can be used to monitor a forecast to see if it is biased high or low?
A)a tracking signal
B)the mean absolute deviation (MAD)
C)the mean absolute percentage deviation (MAPD)
D)a linear trend line model

Question

Quizplus · Accepted Answer

A tracking signal can be used to monitor a forecast to see if it is biased high or low. It measures the deviation between actual and forecasted values and provides an indication of whether the forecast is consistently over- or under-estimating. The mean absolute deviation (MAD) and mean absolute percentage deviation (MAPD) are measures of forecast accuracy but do not provide information on bias. A linear trend line model is a method for forecasting future values based on historical trends but does not provide information on bias in the forecast.

Which of the Following Can Be Used to Monitor a Forecast