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:

Crossing The Chasm

A marketing theory that describes the challenge of transitioning from early adopters of a product or service to a broader mainstream market.

Positioning

A marketing strategy that focuses on how your customers think or talk about product and company relative to competitors.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.

Demographics

The statistical characteristics of human populations, such as age, gender, income, and education, used especially to identify markets.