A time series with forecast values and error terms is presented in the following table.The mean error (ME)for this forecast is ___.
A)-0.80
B)-1.00
C)-4.00
D)8.00
E)1.00

Question

A time series with forecast values and error terms is presented in the following table.The mean error (ME)for this forecast is ___. 
A)-0.80 
B)-1.00 
C)-4.00 
D)8.00 
E)1.00

Quizplus · Accepted Answer

The mean error (ME) is calculated as the average of the forecast errors: 
ME = (sum of forecast errors) / (number of forecasts)
In the table, there are 7 errors with a total sum of -7. Therefore, the ME is:
ME = (-7) / 7 = -1.
The closest choice to this value is answer choice B, -1.00.

A Time Series with Forecast Values and Error Terms Is