The Mean Absolute Error, Mean Squared Error, and Mean Absolute

question 31

Multiple Choice

The mean absolute error, mean squared error, and mean absolute percentage error are all methods to measure the accuracy of a forecast. These methods measure forecast accuracy by

• A)determining how well a particular forecasting method is able to reproduce the time series data that are already available.
• B)using the current value to estimate how well the model generates previous values correctly.
• C)predicting the future values and wait for a pre-defined time period to examine how accurate the predictions were.
• D)adjusting the scale of the data.

Compute and analyze the working capital to understand a company’s short-term financial health.

Calculate and interpret the acid-test (quick) ratio to evaluate immediate liquidity.

Understand and apply common size percent analysis to assess financial statement items in proportion to a base figure.

Analyze and interpret the dividend yield ratio and its importance to investors.

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Definitions:

Statement of Financial Positions

A financial report that presents a company's assets, liabilities, and equity at a specific point in time, giving insight into its financial health.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Dividends Per Share

The total amount of dividends declared by a company for each share of its stock, indicating the income investors receive from holding shares in the company.