Use the Following to Answer Questions

question 8

Multiple Choice

Use the following to answer questions
A researcher is interested in forecasting the house price index in Country Z. The observed price index values from 1996 to 2000 are 101, 103 104, 107 and 111. The researcher uses two different forecasting models, A and B. The forecasts for the price index using Model A are 100.5, 102.4, 103.2, 106 and 111 whilst the forecast using Model B are 100.8, 102.2, 104, 104.2 and 112.1.
-What are the closest to the mean absolute errors from models A and B?

• A) 0.58 and 0.98, respectively
• B) 0.98 and 0.58, respectively
• C) 0.45 and 1.95, respectively
• D) 1.95 and 0.45, respectively

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Definitions:

Metatarsals

The long bones in the foot that connect the ankle to the toes, important for walking and balance.

Sternum

The long, flat bone located in the center of the chest, connected to the ribs via cartilage, forming part of the rib cage.

Styloid Process

A slender, pointed piece of bone that extends down from the temporal bone of the skull, serving as an attachment point for muscles associated with the tongue and larynx.

Scapula

The shoulder blade, a flat, triangular bone located at the back of the shoulder, serving as an important site for muscle attachment.