The Measure of Whether a Forecast Method Consistently Over- or Underestimates

question 44

Multiple Choice

The measure of whether a forecast method consistently over- or underestimates 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:

Distance Indicator

A tool or measure used to determine the gap, space, or range between two points or objects.

Nonverbal Cue

A form of communication that does not use speech or written words, including gestures, facial expressions, and body language.

Sequence Of Events

The order in which related events or processes occur, often leading from a cause to an effect.

Plutchik

Refers to Robert Plutchik, who is best known for proposing a psychoevolutionary theory of emotion that includes the famous wheel of emotions.