Accuracy measures used to evaluate forecasts

1. Explain the concept of decomposing a time series

2. Explain when a multiplicative decomposition may be more appropriate than an additive decomposition

Which of the following statements is true concerning the accuracy measures used to evaluate forecasts?

a. The MAPE takes into consideration the magnitude of the values being forecast.

b. The MSE and RMSE penalize large errors.

c. The MPE is used to determine whether a model is systematically predicting too high or too low.

d. The advantage of the MAD method is that it relates the size of the error to the actual observation

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