A time series with forecast values and error terms is presented in the following table.The mean error (ME)for this forecast is ___________.
A)1.67
B)1.34
C)6.68
D)3.67
E)2.87

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)1.67 
B)1.34 
C)6.68 
D)3.67 
E)2.87

Quizplus · Accepted Answer

Mean error (ME) is the average of error terms which is calculated as the sum of all error terms divided by the number of forecast values. 
ME = (4.5 + 0.5 -3.5 -3.5 -1.5 -1.5) / 6 = 1.67. Thus, the best choice is A.

A Time Series with Forecast Values and Error Terms Is