The measure of whether a forecast method consistently over- or underestimates demand is
A)mean absolute deviation (MAD).
B)mean absolute percentage error (MAPE).
C)bias.
D)the tracking signal.

Question

Quizplus · Accepted Answer

Bias measures whether a forecast method consistently over- or underestimates demand. MAD and MAPE are measures of forecast accuracy, but do not specifically address bias. The tracking signal can be used to monitor and detect bias, but it is not a direct measure of bias itself.

The Measure of Whether a Forecast Method Consistently Over- or Underestimates