Question: Rachel gets a negative average error when applying a forecasting method for forecasting guests coming to her hotel - what does that imply? Error =

Rachel gets a negative average error when applying a forecasting method for forecasting guests coming to her hotel - what does that imply?
Error = Actual - Forecast
Question 19 options:
It implies nothing in terms of Rachel's decision making for anticipating and preparing for future guests.
Rachel will have to bear the cost of empty rooms and extra staff/resources more often than not. An overforecasting bias meaning that the forecast may be higher than the actual demand over a period of time.
Rachel will have to turn away guests more often than not. An underforecasting bias means that the forecast may be lower than the actual demand over a period of time.

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