EJ Corp has just begun a forecasting system to estimate the future NZD and EUR spot...

 

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EJ Corp has just begun a forecasting system to estimate the future NZD and EUR spot rates. Here are the forecasted and realized values for the last 4 months: NZD/USD Forecasted Month January 0.52 February 0.54 March 0.44 April 0.51 Realized 0.50 0.60 0.40 0.50 EUR/USD Forecasted 1.15 1.25 1.05 0.95 Realized 1.20 1.15 1.10 0.95 Given the following data, calculate the mean absolute forecast error (MAFE) and decide which currency forecasting has better accuracy? (8 marks) EJ Corp has just begun a forecasting system to estimate the future NZD and EUR spot rates. Here are the forecasted and realized values for the last 4 months: NZD/USD Forecasted Month January 0.52 February 0.54 March 0.44 April 0.51 Realized 0.50 0.60 0.40 0.50 EUR/USD Forecasted 1.15 1.25 1.05 0.95 Realized 1.20 1.15 1.10 0.95 Given the following data, calculate the mean absolute forecast error (MAFE) and decide which currency forecasting has better accuracy? (8 marks)

Answer rating: 100% (QA)

To calculate the Mean Absolute Forecast Error MAFE for each currency forecasting well first need to ... View the full answer