Question

Samwell Subaru, a Dallas based car dealership, delivers every month two different 6-month sales forecasts to manufacturing headquarters (MHQ). MHQ has to bear a very high transshipment cost if the mismatch between the forecasted and actual order is very high, so the company wants to accentuate large deviations. Which forecast accuracy measure should be used to evaluate different forecasting methods

Answer 1

"MSE (Mean Squared Error)" is the appropriate answer.

Step-by-step explanation:

• It appears to emphasize major mistakes because that is the squares of such mistakes, which seems to be a significant indication including feedback upon that fitness of the regression equation.
• The use of MSE means that rather than a big one, an individual would like to have many minor differences.