Question

A consistent tendency for forecasts to be greater or less than the actual values is calledâ ________ error.

a. an unbalanced

b. an extreme

c. a bias

d. a trend

Answer 1

The correct answer is C.

By definition, a bias is a systematic error that generates a distortion in the forecasted results. It can consist on an overestimating or underestimating a parameter.

For example, sampling bias appears when the sample obtained is not a proper representation of the underlying population.