Consider the following data concerning the performance of a forecasting method.
A)The CFE is greater than 100,and the MAD is less than 50.
B)The CFE is less than 100,and the MAD is less than 50.
C)The CFE is less than 100,and the MAD is greater than 50.
D)The CFE is greater than 100,and the MAD is greater than 50.

Question

Consider the following data concerning the performance of a forecasting method. 
A)The CFE is greater than 100,and the MAD is less than 50. 
B)The CFE is less than 100,and the MAD is less than 50. 
C)The CFE is less than 100,and the MAD is greater than 50. 
D)The CFE is greater than 100,and the MAD is greater than 50.

Quizplus · Accepted Answer

A low MAD value indicates that the actual values are very close to the forecasts made by the method. A CFE value less than 100 indicates that the method is accurately predicting the values without any bias. Therefore, option B is the best choice.

Consider the Following Data Concerning the Performance of a Forecasting