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:

Dividend Payout

The portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares.

Future Dividend

The dividends that a company expects to declare and pay to shareholders in upcoming periods, based on future earnings projections.

Dividend Payout

The portion of the earnings a company decides to pay to its shareholders in the form of dividends.

Stock Prices

The current market price of a company's shares, representing the valuation that the market assigns to a single share of the company's stock.