One Commonly Used Way to Improve a Numerical Model Forecast

question 61

Multiple Choice

One commonly used way to improve a numerical model forecast is to:

• A) simplify the model's assumptions.
• B) eliminate portions of the model that aren't contributing to the forecast.
• C) statistically assess errors that the model makes repeatedly and adjust the forecast accordingly.
• D) reformulate the model after every forecast to correct errors.

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Definitions:

Equilibrium

Equilibrium is a state in economics where market supply and demand balance each other, and as a result, prices become stable.

Specialize

To focus on a particular area of knowledge, activity, or service, developing expertise in that specific field.

Equity

In finance, equity represents ownership interest in a company, typically in the form of stocks. In a broader context, it refers to fairness and justice in treatment.

Efficiency

The effectiveness with which a system, process, or organization uses its resources to achieve its objectives, often with minimum waste or effort.