Which of the Following Is True of Squared Forecast Errors

question 14

Multiple Choice

Which of the following is true of squared forecast errors?

• A)An error of +2 yields a greater loss than an error of −2.
• B)An error of −2 yields a greater loss than an error of +2.
• C)An error of −2 or +2 yields the same loss.
• D)Loss from positive and negative forecast errors cannot be compared.

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