Question: Why does the MSD penalize a forecasting method much more for large forecast errors than for small forecast errors?

Why does the MSD penalize a forecasting method much more for large forecast errors than for small forecast errors?

Step by Step Solution

★★★★★

3.40 Rating (187 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A squared forecast error is especially large when the error itse... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Business Statistics Questions!

Q:

The Centerville Water Department provides water for the entire town and outlying areas. The number of acre-feet of water consumed in each of the four seasons of the three preceding years is shown...

Q:

Mark Lawrencethe man with two first nameshas been pursuing a vision for more than two years. This pursuit began when he became frustrated in his role as director of human resources at Cutting Edge, a...

Q:

a. Mark first asks you to forecast daily demand for the next week using the data from the past 13 weeks. You should make the forecasts for all the days of the next week now (at the end of week 5),...

Q:

Which of the following is a key difference between mean square error and mean absolute deviation? Select Select The value of the mean square error depends on the measurement scale of the time series...

Q:

1,) Which of the following statements is true? A) The mean squared error is influenced much more by large forecast errors than is the mean absolute error. B) Forecast errors should be summed to judge...

Q:

Which of the following is a key difference between mean square error and mean absolute deviation? Select Select The value of the mean square error depends on the measurement scale of the time-series...

Q:

Chartam, Inc. When Fred woke up that morning, he knew it was going to be a tough day. Besides the usual firefighting that he, as Plant Manager, had to deal with every day, he also had to meet with...

Q:

Chartam, Inc. When Fred woke up that morning, he knew it was going to be a tough day. Besides the usual firefighting that he, as Plant Manager, had to deal with every day, he also had to meet with...

Q:

Question 1 Type 2 error is when the null hypothesis is right but the test rejects it. Group of answer choices True No answer text provided. No answer text provided. False Question 2 For a given...

Q:

DS 533: APPLIED BUSINESS FORECASTING AND PLANNING Class Project: Project Report 2 General description: The intention of this project report is to allow students to apply the time-series forecasting...

Q:

Based on given table Key Currency Cross-Rate Calculations for February 18, 2015 , pick up two currency pairs and deduce their related cross rates. Canada Japan Mexico Switzerland U.K. Euro U.S....

Q:

What sum of money when increased by 7% equals $52.43?

Q:

Suppose that West Bank s deposit account agreement had not included an obligation to depositor to exercise good faith and ordinary care in connection with each account How might the result have been...

Q:

1.4-3 What are some newborn abilities, and how do researchers explore infants mental abilities?

Q:

A company that makes designer sandals has tracked the production volume over the past six months. Because of the companys focus on quality, some sandals need to be reworked before they are fit to be...

Q:

A department store manager randomly sampled customers in her store. She recorded the number of minutes each customer spent in the store and then asked the customers how many miles they had traveled...

Q:

A concert promoter has randomly sampled 100 concertgoers to determine whether there is a linear relationship between income level and the number of concerts attended per year. The correlation between...

Q:

Can my tutor please explain and answer all of the following question, please show your work Chapter 8.2 3. Revenue of Large Businesses A researcher estimates that the average revenue of the largest...

Q:

Just Dew It Corporation reports the following balance sheet information for 2020 and 2021. Based on the balance sheets given for Just Dew it: a. Calculate the current ratio for each year. (Do not...

Q:

3. A car dealership offers a lease on an $18000 car. The lessee will pay $2000 down and $200 per month for 36 months. He then has the option to purchase the car for $13000. Instead, he could borrow...