Assume the Following Information Given This Information, the Mean Absolute Forecast Error as a

question 31

Multiple Choice

Assume the following information:
$\begin{array}{ccc}\text { Period } & \begin{array}{c}\text { Predicted Value of } \\\text { New Zealand Dollar }\end{array} & \begin{array}{c}\text { Realized Value of } \\\text { New Zealand Dollar }\end{array} \\1 & \$ .52 & \$ .50 \\2 & .54 & .60 \\3 & .44 & .40 \\4 & .51 & .50\end{array}$

Given this information, the mean absolute forecast error as a percentage of the realized value is about:

• A) 1.5%.
• B) 26%.
• C) 6%.
• D) 6.5%.
• E) none of the above

---

Definitions:

Point Estimate

A single value or statistic that serves as the best guess or most plausible value of a population parameter based on sample data.

Sample Proportion

The fraction or percentage of the sample that represents a particular characteristic or attribute within the population.

Finite Population Correction Factor

A correction used in sampling to adjust for the effect of sampling without replacement from a finite population.

Subset

A set of elements that are all members of another set, and possibly fewer in number.