Forecast Skill Is Very Important Because

question 91

Multiple Choice

Forecast skill is very important because

• A)operational people use the forecast to make decisions.
• B)the forecasters develop a bad attitude when they "bust" a forecast.
• C)the National Weather Service gets sued every time a forecast is bad.
• D)None of these-forecast skill is unimportant because no one believes any of the forecasts that are made anyway.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future economic decisions.

Average Fixed Cost

Is the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Marginal Cost

The cost associated with producing one additional unit of a product, which can vary depending on the level of production.

Output

The amount of goods or services produced by a person, machine, business, or industry.