Matching questions ask you to match each phrase in the top with one of the choic
ID: 3324167 • Letter: M
Question
Matching questions ask you to match each phrase in the top with one of the choices following. Not all choices will necessarily be used Enter a letter (a,b,c,etc) from the list into each of the boxes. Mean Absolute Percentage Error Mean Percentage Error Mean Absolute Error Root Mean Squared Error Mean Error a. This indicates whether forecasts are biased high or low. b. Shows Independent Identically Distributed Random Variables. c. Demonstrates locally stationary variables with a moving average. d. The most common standard of goodness-of-fit, penalized big errors by squaring them e. This indicates whether forecasts are biased high or low in percentage terms. f Shows the random walk model. g. The average of the absolute values of the enrors, more tolerant of occasional big errors. h. better if the data varies over a wide range due to compound growth or inflation or seasonality, in which you may want to measure percentage errors.Explanation / Answer
Solution:
The correct answers are :
1) Mean Absolute Percentage Error (MAPE) - (h) Better if the data varies over a wide range due to compound growth or inflation or seasonality, in which you may want to measure percentage errors.
2) Mean Percentage Error (MPE) - (e) This indicates whether forecasts are biased high or low in percentage terms.
3) Mean Absolute Error (MAE) - (g) The average of absolute values of the errors, more tolerant of occasional big errors.
4) Root Mean Squared Error (RMSE) - (d) The most common standard of goodness-of-fit, penalised big errors by squaring them.
5) Mean Error (ME) - (a) This indicates whether forecasts are biased high or low.