Which of the Following Is a Possible Source of Bias

question 64

Multiple Choice

Which of the following is a possible source of bias error in forecasting?

• A) Failing to include the right variables
• B) Using the wrong forecasting method
• C) Employing less sophisticated analysts than necessary
• D) Using incorrect data
• E) Using standard deviation rather than MAD

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Definitions:

Total Revenue

The total income generated from the sale of goods or services by a company.

Profitable One

An entity or venture that generates income exceeding its costs and expenses, thereby yielding a surplus or profit.

MC > MR

A condition where the marginal cost of producing an additional unit is greater than the marginal revenue gained from selling it, indicating it’s not profitable to increase production.

Profit Maximized

The point at which a firm achieves the highest possible profit, typically by adjusting output levels or prices.