Identify the Formula Used to Calculate the Root Mean Square $=\sqrt{\frac{\sum_{t=1}^{n}\left|A_{t}-F_{t}\right|}{n}}$

question 37

Multiple Choice

Identify the formula used to calculate the root mean square error over a range of forecasted values, if the actual value of the time series at time t and the forecast value for time t are denoted by At and Ft respectively.

• A) RMSE \( =\sqrt{\frac{\sum_{t=1}^{n}\left|A_{t}-F_{t}\right|}{n}} \)
• B) RMSE \( =\sqrt{\frac{\sum_{t=1}^{n} \sqrt{\left|A_{t}-F_{t}\right|}}{n}} \)
• C) RMSE \( =\sqrt{\frac{\sum_{t=1}^{n}\left(\lambda t-F_{t}\right)^{2}}{n}} \)
• D) RMSE \( =\sqrt{\frac{\sum_{t=1}^{n}\left|\frac{A_{t}+F_{t}}{2}\right|}{n}} \)

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