BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
If the forecasted value of the time series variable for period 2 is 22.5 and the actual value observed for period 2 is 25, what is the forecast error in period 2?
|
|
3
|
|
|
2
|
|
|
2.5
|
|
|
-2.5
|
Explanation:
Detailed explanation-1: -Forecast error is the amount by which the predicted value differs from the observed value of the time series variable.
Detailed explanation-2: -Explanation: In statistics, a forecast error is the difference between the actual or real and the predicted or forecast value of a time series or any other phenomenon of interest.
Detailed explanation-3: -variance is NOT a time series component, it refers to the spread of a data set.
There is 1 question to complete.