2 Which of the following is TRUE (check all the correct choices, wrong answers w

Question

2

Which of the following is TRUE (check all the correct choices, wrong answers will incur negative marking) To find MAPE, you need to find the absolute difference between the actual value and the forecast, then divide this absolute difference by the forecast value. Then take the average of all these absolute percentage errors. To find MAD, you need to find the difference between the actual value and the forecast and then take the average of all these differences To find MSE, you need to find the square of the difference between the actual value and the forecast and then take the average of all these differences squared To find MSE, you need to find the square of the difference between the actual value and the forecast and then sum all these differences squared To find MAPE, you need to find the absolute difference between the actual value and the forecast, then divide this absolute difference by the actual value. Then take the average of all these absolute percentage errors. To find MAD, you need to find the absolute difference between the actual value and the forecast and then take the average of all these absolute differences In the multiplicative time series model, the trend component is first found by using the overall average. Then the seasonal component (index) is identified using the data. These two components are then multiplied to get the final forecast. In the multiplicative time series model, the trend component is first found by using regression. Then the seasonal component (index) is identified using the data. These two components are then multiplied to get the final forecast.

Explanation / Answer

The computational formula of MSE, MAD, and MAPE are as follows:

MSE=Sigma Error^2/n, where, Error=Actual value-forecast, Option 3 is correct.

MAD=|Sigma Error|/n, option 6 is correct.

MAPE=1/n {sigma |actual-forecast|/|actual|}*100, Option 5 is correct

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