Bias Exists When Forecasts Tend to Be Greater or Less

question 59

True/False

Bias exists when forecasts tend to be greater or less than the actual values of time series.

---

Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Equipment

Physical assets used in the operation of a business, such as machinery, computers, and vehicles, often considered in terms of its depreciation or investment value.

Invoice Price

The price initially set by the manufacturer or provider for a product or service, usually before any discounts or increases for market forces.

Accrued Interest

Interest that has accumulated on a bond since the last interest payment was made but has not yet been paid to the bondholder.