Which Summary Measure for Forecast Errors Does Not Depend on the Units

question 94

Multiple Choice

Which summary measure for forecast errors does not depend on the units of the forecast variable?

• A)MAE (mean absolute error)
• B)MFE (mean forecast error)
• C)RMSE (root mean square error)
• D)MAPE (mean absolute percentage error)

Understand the strategic use of promotional elements based on product and market characteristics.

Recognize the synergistic effects of combining different promotional elements.

Comprehend the concept of control in publicity and its impact on marketing strategies.

Understand the concept of leadership as an interactional phenomenon among individuals.

---

Definitions:

Standard Cost System

An accounting system that assigns predetermined costs to products and services, which are then compared to actual costs for variance analysis.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of production costs.

Raw Materials Inventory

The stock of basic materials that are used in production but have not yet been processed.

Standard Costs

Predetermined or budgeted costs for materials, labor, and overhead, used as benchmarks to measure actual performance and manage costs.