BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mean forecast error
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Mean absolute error
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Smoothing constant
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Forecast error
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Detailed explanation-1: -Mean forecast error. is the amount by which the predicted value differs from the observed value of the time series variable.
Detailed explanation-2: -The difference between an observed value and a predicted value of the response variable is called a residual.
Detailed explanation-3: -The given time series plot exhibits both a seasonal pattern and a linear trend. variable. D. Forecast error is the amount by which the forecasted value differs from the observed value.
Detailed explanation-4: -The forecast error is calculated as the expected value minus the predicted value. This is called the residual error of the prediction. The forecast error can be calculated for each prediction, providing a time series of forecast errors.
Detailed explanation-5: -Forecast error is the deviation of the actual demand from the forecasted demand. If you can calculate the level of error in your previous demand forecasts, you can factor this into future ones and make the relevant adjustments to your planning.