Question

The most commonly used criteria for measuring forecast error is

• A. Mean standard error
• B. Mean absolute deviation
• C. Mean absolute percentage error
• D. Mean square error

Answer 1

The correct option is D Mean square error

Most commonly used criteria for measuring the forecast error is Mean square error.

Sequence according to the uses is:

(i) Mean square error
(ii) Mean absolute deviation
(iii) Mean forecast error or Bias
(iv) Mean absolute percentage error