Which One of the Following Statements About Forecasting Is FALSE

Multiple Choice

Which one of the following statements about forecasting is FALSE?

A) The method for incorporating a trend in an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean, one for the trend, and one for the error.
B) A tracking signal is a measure that indicates whether a method of forecasting has any built- in biases over a period of time.
C) The standard deviation and the mean absolute deviation measure the dispersion of forecast errors.
D) The cumulative sum of forecast errors (CFE) is useful in measuring the bias in a forecast.