Question: Assume that a time - series forecast is generated for future demand and subsequently it is observed that the forecast method did not accurately predict
Assume that a timeseries forecast is generated for future demand and subsequently it is observed that the forecast method did not accurately predict the actual demand. Specifically, the forecast errors were found to be:
Mean absolute percent error
Cumulative sum of forecast errors
Which one of the statements concerning this forecast is true?
Question options:
A
The forecast has no bias and has a standard deviation of errors equal to zero.
B
The forecast has no bias but has a positive standard deviation of errors.
C
The forecast has a positive bias and a standard deviation of errors equal to zero.
D
The forecast has a positive bias and a positive standard deviation of errors.
E
None of the choices
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