Which of the Following Is True Regarding the MSE and MAD

question 116

Multiple Choice

Which of the following is true regarding the MSE and MAD in forecasting?

• A) The MAD will tend to be a larger value than the MSE.
• B) The MSE is much more useful than the MAD.
• C) The square root of the MSE provides a value that will be similar to the MAD.
• D) The MAD will be equal to the MSE.

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Definitions:

Nonfinancial Performance Measures

Metrics used to assess aspects of an organization's performance that are not directly related to financial outcomes, such as customer satisfaction and employee engagement.

Company Performance

An evaluation of a company's financial and operational effectiveness, typically measured by metrics such as revenue, profitability, and market share.

Nonfinancial Performance Output

Nonfinancial performance output assesses a company's operational efficiency, customer satisfaction, and employee engagement, which are not directly measured in monetary terms.

Input Measures

Quantitative indicators used to assess the amount of resources consumed during the production of goods or services.