Each Day a Weather Forecaster Gives a Certain Prediction of Rain.How

question 9

Essay

Each day a weather forecaster gives a certain prediction of rain.How can you use these predictions to see if his/her probabilities are well calibrated? Assume you have the following data recorded for each day: what chance of rain was forecasted, and whether or not it actually rained that day.

---

Definitions:

Straight-Line Method

A depreciation method that allocates an equal portion of the initial cost of an asset to each accounting period over its useful life.

Revised Depreciation

An updated calculation of an asset's depreciation expense, adjusted due to changes in estimates, useful life, or salvage value.

Useful Life

The estimated period that an asset is expected to be usable for its intended purpose.

Depreciation Expense

The allocation of the cost of an asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.