In Situations Where Forecast Errors Are to Be Weighed in Proportion

question 37

Multiple Choice

In situations where forecast errors are to be weighed in proportion to their magnitude, the preferred performance evaluator would most likely be:

• A)MSE.
• B)MAD.
• C)MAPE.
• D)LAD.

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Definitions:

Decreasing Rate

Decreasing Rate refers to a situation where the rate of growth or rate of increase in a variable is slowing down over time.

M2

A measurement of the total amount of money available that encompasses physical currency, funds in checking accounts, and near-cash assets like savings accounts and money market funds.

Basic Money Supply

The total amount of liquid money available in the economy, including cash and easily accessible deposits.

M1

A category of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other liquid assets accessible for immediate spending.