To assess the adequacy of a forecasting model, one measure that is often used is
A) the MAD.
B) quadratic trend analysis.
C) exponential smoothing.
D) moving averages.

Question

Quizplus · Accepted Answer

The MAD (Mean Absolute Deviation) is a commonly used measure to assess the accuracy of forecasting models. It measures the average difference between actual and forecast values, which gives an indication of how well the model is performing. The lower the MAD, the better the model is at forecasting. Other techniques like quadratic trend analysis, exponential smoothing, and moving averages can also be useful for forecasting, but they do not provide a direct measure of model accuracy like the MAD does.

To Assess the Adequacy of a Forecasting Model, One Measure