Forecast error a. is associated with measuring forecast accuracy. b. takes a positive value when the forecast is too high. c. cannot be zero. d. cannot be negative.

The correct answer is a. is associated with measuring forecast accuracy

Explanation:

Measurement error can be defined as the difference between a measured value and a true value. If we transport this to the business environment, in our demand forecasts, and in the most general sense, we can define forecast error as the comparison between the forecasted value and the real value.

Their calculation allows us to make decisions against which forecasting method is the best and they manage to detect when something in our demand forecast is not going well, with which we manage to change the direction of our decisions in order to make the best choices.

There will always be an error in the calculation of a demand forecast. In practice, we try to minimize both types of errors by choosing the best forecasting method, and that is why there is an error measurement in demand forecasts.