Which of the Following Statistical Measures Is Used to Help

question 113

Multiple Choice

Which of the following statistical measures is used to help decision makers assess the potential for their model to provide usable forecasts?

• A) The mean absolute deviation
• B) The mean square error
• C) Both A and B
• D) Neither A nor B

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Definitions:

Overbooking

A strategy used by airlines and hotels where more tickets or rooms are sold than available, based on predicted no-shows.

Chance

A measure of the likelihood or probability of certain events happening, often used in the context of statistical analysis and risk assessment.

Tornado Chart

A graphical method used to display the sensitivity of a result to changes in variables or inputs, resembling a tornado when variables are ranked by importance.

Market Size

The total volume of sales of a specific product or service or the total number of potential customers within a given market.