Explain, Briefly, Why Most Forecasting Error Measures Use Either the Absolute

question 64

Essay

Explain, briefly, why most forecasting error measures use either the absolute or the square of the error.

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Definitions:

FTC

The Federal Trade Commission, a U.S. federal agency responsible for protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices.

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico to eliminate tariffs and facilitate trade among the three countries.

Made in the U.S.A.

A label indicating that a product has been manufactured or substantially transformed in the United States.

Cooling Off Rule

A federal regulation allowing consumers to cancel certain types of sales or contracts within three days for a full refund.