One Measure of the Accuracy of a Forecasting Model Is

question 38

Multiple Choice

One measure of the accuracy of a forecasting model is the

• A)smoothing constant
• B)trend component
• C)mean absolute deviation
• D)seasonal index

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Common Equity

The percentage of a corporation's equity held by investors in the form of common shares.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.

Free Cash Flow

This refers to the amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. It is an important indicator of financial health.