The Measure of Forecast Error Where the Average Absolute Error

question 49

Multiple Choice

The measure of forecast error where the average absolute error of each forecast is shown as a percentage of demand is

• A) mean squared error (MSE).
• B) mean absolute deviation (MAD).
• C) mean absolute percentage error (MAPE).
• D) bias.
• E) the tracking signal.

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Definitions:

Consistency

Refers to the quality of being uniform, stable, and unchanging over time.

Internal Causes

are reasons or factors within an organization that lead to a particular outcome or effect, often related to its processes, structures, or people.

Causal Attributions

The process by which individuals explain the causes of behavior and events, influencing how they perceive and interact with the world.

Perceiver

An individual who observes and interprets stimuli from the environment, forming perceptions that influence their understanding and interaction with the world.