Which One of the Following Statements About Forecasting Is FALSE

question 8

Multiple Choice

Which one of the following statements about forecasting is FALSE?

• A)The method for incorporating a trend into an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean,one for the trend,and one for the error.
• B)The cumulative sum of forecast errors (CFE)is useful in measuring the bias in a forecast.
• C)The standard deviation and the mean absolute deviation measure the dispersion of forecast errors.
• D)A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time.

---

Definitions:

Permafrost

Permanently frozen ground that occurs in high latitude or altitude regions.

Polar Grasslands

A cold, treeless region found in the high latitudes, often referred to as tundra, where the subsoil is permanently frozen and vegetation is sparse.

Arctic Tundra

A cold, treeless biome found in the Arctic regions, characterized by permafrost, low temperatures, and minimal vegetation.

Convection

The transfer of heat through a fluid (liquid or gas) caused by molecular motion.