If the MFE had a negative sign
A) The forecast method used inappropriate.
B) The distribution of randomness was skewed to the right.
C) The forecast tended to be too high.
D) Demand was higher than expected.

Question

Quizplus · Accepted Answer

A negative Mean Forecast Error (MFE) indicates that the actual values were consistently higher than the forecasted values, meaning the forecast tended to underestimate or be too low, not too high as stated in option C.

If the MFE Had a Negative Sign