Describe three popular measures of forecast accuracy
What will be an ideal response?
Measures of forecast accuracy include: (a) MAD (mean absolute deviation) is a sum of the absolute values of individual errors divided by the number of periods of data; (b) MSE (mean squared error) is the average of the squared differences between the forecast and observed values; and (c) MAPE (mean absolute percent error) is the average of the absolute differences between the forecast and actual values, expressed as a percent of actual values.
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In determining the extent to which the auditor may use the work of others in the audit of ICFR, the auditor should do all of the following except:
A. be ready to document the extent to which he or she relied on the work. B. evaluate the competence and objectivity of the individuals who performed the work. C. evaluate the risks associated with the controls subjected to the work of others. D. All of these are required.
Which of the following is least useful in evaluating a company's financial statements?
a. Comparison of the company's current period data with accounting data from 5 years ago b. Comparison with other companies in the same industry c. Comparison with government economic data for the economy as a whole. d. Comparison of the company's current period data with that of the last year
On January 1, 2010, Walker Corporation has the following stockholders' equity accounts: Common Stock, $10 par $300,000 Retained Earnings 900,000 The fair market value of Walker's net identifiable assets on this date was equal to their book value. On January 1, 2010, Rau Corporation acquired 100 percent of the common stock of Walker Corporation for $1,320,000 cash. The elimination entry necessary
to prepare a consolidated balance sheet for this date is: a. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Goodwill 120,000 Investment in Walker Corporation(Rau) 1,320,000 b. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Loss from Consolidation 120,000 Investment in Walker Corporation (Rau) 1,320,000 c. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Investment in Walker Corporation (Rau) 1,200,000 d. Common Stock(Walker) 300,000 Retained Earnings(Walker) 900,000 Gain from Consolidation 120,000 Investment in Walker Corporation (Rau) 1,320,000
A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances
a. True b. False Indicate whether the statement is true or false