Why does the MSD penalize a forecasting method much more for large forecast errors than for small

Question:

Why does the MSD penalize a forecasting method much more for large forecast errors than for small forecast errors?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Statistics In Practice Using Data Modeling And Analytics

ISBN: 9781259549465

8th Edition

Authors: Bruce L Bowerman, Richard T O'Connell, Emilly S. Murphree

See More Books

Question Posted: Nov 26, 2018 11:22 AM

See More Questions

The Centerville Water Department provides water for the entire town and outlying areas. The number of acre-feet of water consumed in each of the four seasons of the three preceding years is shown...
Mark Lawrencethe man with two first nameshas been pursuing a vision for more than two years. This pursuit began when he became frustrated in his role as director of human resources at Cutting Edge, a...
a. Mark first asks you to forecast daily demand for the next week using the data from the past 13 weeks. You should make the forecasts for all the days of the next week now (at the end of week 5),...
A parallel-plate capacitor with circular plates of radius 0.10 m is being discharged. A circular loop of radius 0.20 m is concentric with the capacitor and halfway between the plates. The...
In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited $25,000 in a bank...
The temperature of a plastic cube is monitored while the cube is pushed 3.0 m across a floor at constant speed by u horizontal force of 15 N. The thermal energy of the cube increases by 20 J. What is...
Most libraries maintain the annual reports of large companies on file or on microfiche. Instructions Obtain the 2001 annual reports for UAL Corp. and The Boeing Company, and answer the following...
Calculations for various depredation methods. On January 1, 2008, Luck Delivery Company acquired a new truck for $30,000. It estimated the truck to have a useful life of five years and no salvage...
Question 3 On 1 January 20X0 Alpha Co purchased 90,000 ordinary $1 shares in Beta Co for $270,000. At that date Beta Co's retained earnings amounted to $90,000 and the fair values of Beta Co's assets...
A molded plastic product (p = 1200 kg/m 3 c = 1500 J/kg K, k = 0.30 W/m K) is cooled by exposing one surface to an array of air jets, while the opposite surface is well insulated. The product may...
Which methodmethod A or method Bgives the smallest MAD? The smallest MSD? The smallest MAPE? Compare two forecasting methodsmethod A and method B. Suppose that method A gives the point forecasts 57,...
What is the MAD? What is the MSD? What is the MAPE? How do we use these quantities?
Fireside Corporation is organized into four operating segments. The internal reporting system generated the following segment information: The company incurred additional operating expenses (of a...
James A. and Ella R. Polk, ages 70 and 65, respectively, are retired physicians who live at 3319 Taylorcrest Street, Houston, Texas 77079. Their three adult children (Benjamin Polk, Michael Polk, and...
I need help solving the following question: - Thank you in advance. On January 1, Year 6, HD Lid., a building supply company, JC Lid., a construction company, and Mr. Saeid, a private investor,...
Let X 1 , , X n X 1 , , X n be a random sample from a normal distribution with mean and variance 1. Find the uniformly minimum variance unbiased estimator of 2 2 .2 answers
The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $3,600 Supplies...
1.Using the Excel file Sales transaction find the following15 Marks a.Identify the levels of measurement for each variables b.Construct a cross tabulation to find the number of transactions by...
Who is an occupier?
Feller Company purchased a site for a limestone quarry for $100,000 on January 2, 2019. It estimate that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligation...
A company that makes designer sandals has tracked the production volume over the past six months. Because of the companys focus on quality, some sandals need to be reworked before they are fit to be...
A department store manager randomly sampled customers in her store. She recorded the number of minutes each customer spent in the store and then asked the customers how many miles they had traveled...
A concert promoter has randomly sampled 100 concertgoers to determine whether there is a linear relationship between income level and the number of concerts attended per year. The correlation between...
During 2024, its first year of operations, Hollis Industries recorded sales of $11,900,000 and experienced returns of $760,000. Cost of goods sold totaled $7,140,000 (60% of sales). The company...
What is the value of a 15% coupon bond with 11% return? Is it a discount or a premium bond?
A manufacturer with a December 31 taxation year end sells new machinery for $50,000 on January 2, 2022. The cost of the machinery is $20,000. The terms of the sale require an initial payment of...

Why does the MSD penalize a forecasting method much more for large forecast errors than for small

Question:

Step by Step Answer:

A squared forecast error is especially large when the error itse...View the full answer

Business Statistics In Practice Using Data Modeling And Analytics

Students also viewed these Mathematics questions