Which of the Following Statements Are True Concerning Time-Series Forecasting

question 20

Multiple Choice

Which of the following statements are true concerning time-series forecasting?
(I) All time-series forecasting methods are essentially extrapolative.
(ii) Forecasting models are prone to perform poorly following a structural break in a series.
(iii) Forecasting accuracy often declines with prediction horizon.
(iv) The mean squared errors of forecasts are usually very highly correlated with the profitability of employing those forecasts in a trading strategy.

• A) (i), (ii), (iii), and (iv)
• B) (i), (ii) and (iii) only
• C) (ii), (iii) only
• D) (ii) and (iv) only

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reflecting the interest payable on any type of debt.

Interest Income

Interest income is the revenue earned from deposit accounts or investments through the lending of funds or the allocation of capital assets expected to generate interest over time.

Self-Esteem

An individual's subjective evaluation of their own worth or abilities.

Depression

A mental disorder characterized by persistent sadness and loss of interest in everyday activities.