Which of the Following Statements Is True About the Forecasting

question 34

Multiple Choice

Which of the following statements is true about the forecasting error measures?

• A)Mean absolute deviation is complex and difficult to compute.
• B)Cumulative sum error tracks the forecasting bias.
• C)Mean absolute deviation provides the percentage of error.
• D)Mean squared errors cannot track the accuracy of the forecast.

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Definitions:

Price Floor

A government-set minimum price for goods or services, above the market equilibrium price, aimed at preventing prices from falling too low.

Price Controls

Government-imposed limits on prices charged for goods and services to manage economy.

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service does not reach or cannot reach its equilibrium.

Quotas

Limits set by government on the quantity of goods that can be imported or produced, intended to protect domestic industries.