In the Formula for MAD, MAPE, and MSE, the Y_t

question 89

Multiple Choice

In the formula for MAD, MAPE, and MSE, the Y_t and _t terms represent

• A)the actual and mean values, respectively.
• B)the actual and forecasted values, respectively.
• C)the forecasted and actual values, respectively.
• D)the predicted and forecasted values, respectively.

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Definitions:

Basket of Goods

A basket of goods is a fixed set of consumer products and services valued on a regular basis for calculating inflation or cost of living adjustments.

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Consumer Price Index

An evaluative measure that calculates the weighted mean cost of a range of consumer services and goods, from food to medical care and transportation.

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The real value of money, reflecting the quantity of goods or services that one unit of money can buy, inversely related to the level of prices in the economy.