Question

Question 142 pts

In a time-series forecast, forecast error is the difference between

The actual value and the associated forecast value

The average value and the expected value of the response variable

Residual and the average value

The explanatory variable value and the response variable value

Answer 1

we know that the residual is difference between the actual value and the predicted value

Similarly, the forecast error is also residual, but it is for time series

So, forecast error in the time series forecast is the difference between the actual value and the associated forecast value or predicted value

therefore, option A is correct

option B is incorrect because we never use average value for forecast error

option C is incorrect because residual is the forecast error

option D is incorrect difference between explanatory and response variable is not forecast