The Forecaster Who Uses MSD (Mean Squared Deviations)to Measure the Effectiveness

question 130

True/False

The forecaster who uses MSD (mean squared deviations)to measure the effectiveness of forecasting methods would prefer method 1 that results in several smaller forecast errors to method 2 that results in one large forecast error equal to the sum of the absolute values of several small forecast errors given by method 1.

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Definitions:

Economic Interests

The motivations and priorities related to wealth, resources, and financial gains of individuals or organizations.

Political Power

The ability or capacity of a person or group to influence or control the direction of affairs within a government or organization.

Residential Sections

Areas within a city or town designated for housing and living purposes, often distinguished by types of homes, socio-economic status, and community characteristics.

Louisville

A city in the U.S. state of Kentucky, known for the Kentucky Derby horse race and as the birthplace of the famous boxer Muhammad Ali.