Question

Positive forecast errors mean that the forecast:

1) Is where the predictor variable indicated
2) Was irregular
3) Was too high
4) Was accurate
5) Was too low

Answer 1

Positive forecast errors mean that the forecast was too high compared to the actual value.

Step-by-step explanation:

Positive forecast errors mean that the forecast was too high compared to the actual value.

In forecasting, the goal is to accurately predict the future value of a variable based on historical data and other relevant factors. However, sometimes the forecast can be off, resulting in errors.

A positive forecast error indicates that the forecasted value was higher than the actual value. This could be due to various reasons such as irregularities in the object being measured or the influence of other factors affecting the outcome.