Leila Corp $S_{t}=a_{0}+a_{1} F_{t}-1+\mu t$ ,
Where St Is the Spot Rate of the the Forecasts

question 11

Multiple Choice

Leila Corp. used the following regression model to determine if the forecasts over the last ten years were biased:
$S_{t}=a_{0}+a_{1} F_{t}-1+\mu t$ ,
where St is the spot rate of the yen in year t and F_t - 1 is the forward rate of the yen in year t - 1. Regression results reveal coefficients of a₀ = 0 and a₁ = .30. Thus, Leila Corp. has reason to believe that its past forecasts have ____ the realized spot rate.

• A)overestimated
• B)underestimated
• C)correctly estimated
• D)none of the above

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Definitions:

Reproductive Isolation

A set of mechanisms or barriers that prevents different species from interbreeding, leading to the formation of new species.

Biological Species Concept

A definition of species according to which a species is a group of interbreeding natural populations that are reproductively isolated from other such groups.

Phylogenetic Species Concept

A method of defining species based on the smallest group of individuals that share a common ancestor, reflecting their evolutionary relationships.

Sexual Selection

A natural selection process where individuals select mates based on certain traits, affecting the reproductive success of individuals.