Which of the Following Is True According to the Text

question 74

Multiple Choice

Which of the following is true according to the text?

• A)The forecast bias of a currency rarely shifts over time.
• B)The absolute forecast error as a percentage of the realized value is a good measure to use in detecting a forecast bias.
• C)Forecasting errors are smaller when focused on longer term periods.
• D)None of the above.

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Definitions:

Probability

The measure of how likely it is for an event to occur, expressed as a number between 0 (impossible) and 1 (certain).

Customers

Individuals or businesses who purchase goods or services from another entity.

Expected Value

The average outcome of a random variable, calculated as the sum of all possible values each multiplied by their respective probability of occurrence.

Raffle Tickets

Tickets sold as a means to raise money for a cause, with the chance of winning prizes.