A Time Series with Forecast Values and Error Terms Is

question 18

Multiple Choice

A time series with forecast values and error terms is presented in the following table.The mean error (ME) for this forecast is ___.

• A)1.67
• B)1.34
• C)6.68
• D)3.67
• E)2.87

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Definitions:

Adjusting Entry

An accounting entry made to update the accounts to reflect accurate and up-to-date information before financial statements are prepared.

Balance Sheet

It's a record that shows a firm's holdings, obligations, and the equity of its shareholders at a given time.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, culminating in net income or loss.

Cash Basis

An accounting method where revenue and expenses are recognized only when cash is received or paid out, respectively.