If the Forecasted Value of the Time Series Variable for Period

question 18

Multiple Choice

If the forecasted value of the time series variable for period 2 is 22.5 and the actual value observed for period 2 is 25, what is the forecast error in period 2?

• A)3
• B)2
• C)2.5
• D)-2.5

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Definitions:

Clairvoyance

The supposed ability to gain information about an object, person, location, or physical event through means other than the known human senses.

Olfactory Sense

The sense of smell, which detects airborne chemicals and translates them into the perception of odors.

Telepathy

The supposed communication of thoughts or ideas by means other than the known senses.

Signal-Detection Theory

A psychological theory that explains how individuals distinguish between informative signals and noise in the environment under conditions of uncertainty.