Which of the Following Is One Suggestion for Improving Forecasting

question 118

Multiple Choice

Which of the following is one suggestion for improving forecasting effectiveness?

• A)Do not utilise a 'no change' scenario.
• B)Base forecasts beyond the next two years.
• C)Utilise the 'half-life' estimation model.
• D)Factor analyse product information.
• E)Use rolling forecasts instead of a static one.

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Definitions:

Single Life Annuity Contract

A Single Life Annuity Contract is an annuity that pays out a fixed or variable income stream to an individual for their lifetime, with payments ceasing upon their death.

Expected Return

The forecasted amount of profit or loss from an investment over a specific period.

Nondeductible Contributions

are contributions made to certain retirement accounts or plans that cannot be deducted from the taxpayer's income.

Taxable Portion

The segment of income, withdrawals, or distributions subject to taxation, after accounting for exemptions, deductions, or pre-tax contributions.