Forecasting techniques are very valuable in business planning, but without effectively examining the forecasting error, a business could make very flawed decisions. It is critical that we always evaluate the level of error and use this information to inform decisions about production, stocking, etc. For each of the error measures below, describe their strengths and weaknesses (Please include references). Finally, select the method you believe would be most useful.

forecast error

CFE

mean bias

MAD

MAPE

Answer rating: 100% (QA)

Forecast errors Strengths are risk mitigation and efficient planning in advance to reduce costs Weak... View the full answer