Forecasting Earnings Is an Example of Which Type of Predictive

question 2

Multiple Choice

Forecasting earnings is an example of which type of predictive analytics?

• A) classification
• B) regression
• C) time series
• D) variance analysis

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Definitions:

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by government bonds.

Recessionary Economy

An economic condition characterized by a significant decline in general economic activity over a sustained period.

Boom Economy

A phase of economic expansion characterized by rapid growth, increased production, and elevated consumer spending.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; in finance, it's often used to measure volatility.