Forecast errors
A)are the difference in successive values of a time series.
B)are the differences between actual and forecast values.
C)should all be nonnegative.
D)should be summed to judge the goodness of a forecasting model.

Question

Quizplus · Accepted Answer

Forecast errors are the differences between actual (observed) values and forecasted values. Choices A and C are incorrect because forecast errors are not limited to successive values and they can be negative. Choice D is also incorrect because a good forecasting model should have as small errors as possible, not necessarily a sum of zero.

Forecast Errors