A Shortcoming of the RMSE (Root Mean Square Error)is That

question 2

True/False

A shortcoming of the RMSE (root mean square error)is that it is not in the same units as the forecast variable.

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Definitions:

Consequential Damages

Compensatory damages awarded in a lawsuit for losses that do not directly arise from the action but are a consequence of the action.

Policy Limits

The maximum amount an insurance company will pay under a policy for a covered loss.

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious behavior.

Property Insurance Policies

Contracts between an insurer and a policyholder that specify the property covered, the risks insured against, and the terms of coverage.