One Measure of the Accuracy of a Forecasting Model Is

question 20

Multiple Choice

One measure of the accuracy of a forecasting model is

• A) the smoothing constant.
• B) a deseasonalized time series.
• C) the mean absolute error.
• D) a projected index value.

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Definitions:

Positively Skewed

A description of a distribution of data in which the tail on the right side of the histogram is longer than the left side, indicating that most values are clustered on the left.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate the population parameter.

Normal Populations

Populations that follow a normal distribution, where the majority of data points are concentrated around the mean value.

Standard Error

A statistical term that measures the accuracy with which a sample distributes around the population mean; it is the standard deviation of the sampling distribution.