Question

The difference between the actual demand for any time period and the forecast for the same period is termed as

• A. regression
• B. mean absolute deviation
• C. Delphi forecasting
• D. forecast error

Answer 1

Answer:

D. forecast error

Forecast error is the difference between actual demand and the forecasted demand. Various ways to represent this error are MAD, MFE, MSE, and MAPE. Forecasting involves making predictions about the future based on past and present data. It is done using quantitative forecasting, executive judgement, sales force opinions, Delphi method, or market surveys.