Match the items of List I with the items of List-II and choose the correct answer from the code given…
Mean forecast error averages signed forecast errors, mean absolute deviation averages their magnitudes, and mean square error averages their squares. Mean absolute…
Choose your answer
Match the items of List I with the items of List-II and choose the correct answer from the code given below.
| List-I | List-II |
|---|---|
| (a) Mean forecast error | (i) Mean of absolute deviations of forecast demands from actual demand values |
| (b) Mean absolute deviation | (ii) Mean of the squares of the deviations of forecast demands from actual demand values |
| (c) Mean square error | (iii) Mean of the deviations of the forecast demands from actual demand |
| (d) Mean absolute percent error | (iv) Mean of the absolute percent deviations of the forecast demands from the actual demand |
Answer and explanation
Correct answer A
Mean forecast error averages signed forecast errors, mean absolute deviation averages their magnitudes, and mean square error averages their squares. Mean absolute percentage error averages the absolute errors expressed as percentages of actual values; retaining the absolute value prevents positive and negative percentage errors from cancelling. The matches are (a)-(iii), (b)-(i), (c)-(ii) and (d)-(iv).
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UGC NET Management