To calculate _____,take the sum of the absolute measures of the errors and divide that sum by the number of observations.
A)MAD
B)MSE
C)CFE
D)MAPE

Question

Quizplus · Accepted Answer

MAD stands for Mean Absolute Deviation, which is calculated by taking the sum of the absolute differences between the predicted and actual values and dividing by the number of observations. This provides a measure of the average magnitude of errors in the predictions. MSE (Mean Squared Error) also provides a measure of the average magnitude of errors, but it squares the differences between the predicted and actual values, which can overweight large errors. CFE (Cumulative Forecast Error) is a measure of the total error over a period of time, and MAPE (Mean Absolute Percentage Error) calculates the average percentage difference between the predicted and actual values, which can be misleading in cases where the actual values are close to zero. Therefore, MAD is the best choice for calculating the average magnitude of errors in the predictions.

To Calculate _____,Take the Sum of the Absolute Measures of the Errors