Assume That You Have Tried Three Different Forecasting Models

question 27

Multiple Choice

Assume that you have tried three different forecasting models.For the first,the MAD = 2.5,for the second,the MSE = 10.5,and for the third,the MAPE = 2.7.We can then say:

• A)the third method is the best.
• B)the second method is the best.
• C)methods one and three are preferable to method two.
• D)method two is least preferred.
• E)None of the above

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Definitions:

Industry Figures

Statistical data or benchmarks pertaining to a specific industry, used for comparison or analysis.

Common-Sized Financial Statement

A financial statement that presents all line items as a percentage of a common base figure, facilitating comparison with other companies or time periods.

Key Item

An essential or significant product, account, or piece of information that holds particular importance within a specific context.

Common-Sized Income Statement

An income statement in which each line item is expressed as a percentage of sales revenue, facilitating comparison across periods and with other companies.