The Average,absolute Difference Between the Forecast and Demand Is a Popular

question 77

True/False

The average,absolute difference between the forecast and demand is a popular measure of forecast error.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Central Limit Theorem

A statistical theory that states that the sampling distribution of the sample mean will approach a normal distribution as the sample size becomes larger, regardless of the shape of the population distribution.

Test Statistic

A calculated value from statistical test data used to determine whether to reject the null hypothesis in favor of the alternative hypothesis.

Average Amount

The sum of a set of numerical values divided by the count of values, typically used to find the central or typical value in a data set.