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 lower CFE indicates that the forecasting method is more accurate, while a lower MAD indicates that the method's forecasts are closer to the actual values. Therefore, option B is the best choice as it shows both a relatively low CFE and a low MAD.

Consider the Following Data Concerning the Performance of a Forecasting