Which of the Following Statement Is True About Statistical Measures

question 19

Multiple Choice

Which of the following statement is true about statistical measures used to estimate and report forecast error?

• A) MSE (mean square error) is in the same units as the data.
• B) MAD (mean absolute deviation) can be negative.
• C) If the measurements are rescaled, MAD won't change.
• D) Forecast errors cannot be negative.
• E) If you choose to rescale measurements, both MASE and MAD will change, but MAPE will remain the same.

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Definitions:

Inventories

Stocks of goods and materials that a company holds for the purpose of resale or production.

Inventory

The total quantity of goods and materials held in stock by a business, warehouse, or retail location.

Overstocking

The practice of holding more inventory than is necessary, often leading to excess stock that is difficult to sell.

Understocking

The condition where the inventory levels are too low, risking stockouts, lost sales, and dissatisfied customers.