Consider the following data concerning the performance of a forecasting method.
A) The CFE is greater than 100, and the MAD is less than 50.
B) The CFE is less than 100, and the MAD is less than 50.
C) The CFE is less than 100, and the MAD is greater than 50.
D) The CFE is greater than 100, and the MAD is greater than 50.

Question

Consider the following data concerning the performance of a forecasting method. 
A) The CFE is greater than 100, and the MAD is less than 50. 
B) The CFE is less than 100, and the MAD is less than 50. 
C) The CFE is less than 100, and the MAD is greater than 50. 
D) The CFE is greater than 100, and the MAD is greater than 50.

Quizplus · Accepted Answer

A high CFE indicates that the forecast is consistently biased, while a low MAD indicates that the forecast has a low level of error or is accurate. Therefore, the best choice would be the option where the CFE is less than 100, indicating low bias, and the MAD is less than 50, indicating low error.

Consider the Following Data Concerning the Performance of a Forecasting