Long-Term Forecasts Are Usually Less Accurate Than Short-Term Forecasts Because

question 51

Multiple Choice

Long-term forecasts are usually less accurate than short-term forecasts because

• A) short-term forecasts have a larger standard deviation of error relative to the mean than long-term forecasts.
• B) short-term forecasts have more standard deviation of error relative to the mean than long-term forecasts.
• C) long-term forecasts have a smaller standard deviation of error relative to the mean than short-term forecasts.
• D) long-term forecasts have a larger standard deviation of error relative to the mean than short-term forecasts.
• E) none of the above

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Definitions:

Significance Level

A threshold in hypothesis testing that determines whether an observed effect is statistically significant. It is the probability of rejecting the null hypothesis when it is true.

Second-order Model

A statistical or mathematical model that includes terms for both the variables and their squared values, allowing for the modeling of curvature in the relationship.

Winning Team's Percentage

A statistic that represents the number of games won by a team divided by the total number of games played, expressed as a percentage.

Coefficient of Determination

A measure that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s), often represented as R^2.