The Displayed Graph Is from a Forecasting Model for Testing

question 122

Multiple Choice

The displayed graph is from a forecasting model for testing a time series. Considering the graph only, which conclusion should a Machine Learning Specialist make about the behavior of the model?

• A) The model predicts both the trend and the seasonality well
• B) The model predicts the trend well, but not the seasonality.
• C) The model predicts the seasonality well, but not the trend.
• D) The model does not predict the trend or the seasonality well.

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Definitions:

Firms

Organizations that use various inputs to produce goods or services for sale to consumers, other businesses, or the government.

Workers

Individuals engaged in a particular task or activity for wages or salary.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.

Equilibrium Price

The cost factor at which the supply side and demand side of goods reach an equilibrium in the market.