Question

You are evaluating a forecast with errors of 10, -12, -8, 16, -6, and 7. Does your forecasting approach have any bias? If no, enter no. If yes, enter either "overforecasting" or "underforecasting" depending on which is correct.

Answer 1

The forecasting approach has both overforecasting and underforecasting bias.

Step-by-step explanation:

The forecast errors of 10, -12, -8, 16, -6, and 7 indicate that there is bias in the forecasting approach. Bias in forecasting refers to a consistent and systematic deviation from the true values. In this case, the positive and negative errors indicate that there is both overforecasting and underforecasting occurring. Hence, the forecasting approach has both overforecasting and underforecasting bias.