Three popular measures of forecast accuracy are:a) total error, average error, and mean error.b) average error, median error, and maximum error.c) median error, minimum error, and maximum absolute error.d) mean absolute deviation, mean squared error, and meanabsolute percent error.

Three popular measures of forecast accuracy are:a) total error, average error, and mean error.b) average error, median error, and maximum error.c) median error, minimum error, and maximum absolute error.d) mean absolute deviation, mean squared error, and meanabsolute percent error.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 29P: The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Three popular measures of forecast accuracy are:
a) total error, average error, and mean error.
b) average error, median error, and maximum error.
c) median error, minimum error, and maximum absolute error.
d) mean absolute deviation, mean squared error, and mean
absolute percent error.

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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