Which one of the following statements about forecasting is FALSE?
A. The method for incorporating a trend into an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean, one for the trend, and one for the error.
B. The cumulative sum of forecast errors (CFE) is useful in measuring the bias in a forecast.
C. The standard deviation and the mean absolute deviation measure the dispersion of forecast errors.
D. A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time.
Answer:A
Which one of the following statements about forecasting is FALSE?
A. The method for incorporating a trend into an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean, one for the trend, and one for the error. B. The cumulative sum of forecast errors (CFE) is useful in measuring the bias in a forecast. C. The standard deviation and the mean absolute deviation measure the dispersion of forecast errors. D. A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time.