If the Actual Value of a Time Series at Time $\frac{\sum_{t=1}^{n}\left|A_{t}-F_{t}\right|}{n}$

question 1

Multiple Choice

If the actual value of a time series at time t and the forecast value for time t is denoted by At and Ft respectively, then the formula for the mean absolute deviation over a range of forecasted values is ________.

• A)MAD = \(\frac{\sum_{t=1}^{n}\left|A_{t}-F_{t}\right|}{n}\)
• B)MAD = \(\frac { \sum _ { t = 1 } ^ { n } \left( \left| A _ { t } - F _ { t } \right| \right) ^ { 2 } } { n }\)
• C)MAD = \(\frac { \sum _ { t = 1 } ^ { n } \sqrt { \left| A _ { t } - F \right| } } { n }\)
• D)MAD = \(\frac { \sum _ { t = 1 } ^ { n } \left| \frac { A _ { t } - F _ { t } } { 2 } \right| } { n }\)

---

Definitions:

Times Interest Earned Ratio

A financial metric used to evaluate a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Operating Costs

Operating costs are the expenses associated with the day-to-day operations of a business, including costs for rent, utilities, payroll, and raw materials.

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the costs of goods sold, showcasing the profitability of a company.

Return On Equity

A measure of a corporation's profitability that calculates how much profit a company generates with the money shareholders have invested.