In the context of forecasting, the term__________refers to the tendency of forecasts to consistently be larger or smaller than the actual values of the time series.
A) trend
B) bias
C) fad
D) variability

Question

Quizplus · Accepted Answer

Bias is the term used in forecasting to describe the consistent overestimation or underestimation of actual values. It is important to identify and account for bias in forecasting models to improve their accuracy. Trend refers to the overall direction and pattern of the time series, fad refers to a short-term trend that quickly becomes outdated, and variability refers to the degree of fluctuation or inconsistency in the time series data.

In the Context of Forecasting, the Term__________refers to the Tendency