Aggregate Forecasts Are Usually More Accurate Than Disaggregate Forecasts Because

question 20

Multiple Choice

Aggregate forecasts are usually more accurate than disaggregate forecasts because

• A) aggregate forecasts tend to have a larger standard deviation of error relative to the mean.
• B) aggregate forecasts tend to have a smaller standard deviation of error relative to the mean.
• C) disaggregate forecasts tend to have a smaller standard deviation of error relative to the mean.
• D) disaggregate forecasts tend to have less standard deviation of error relative to the mean.
• E) none of the above

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated or categorized to determine their effect on dependent variables.

Determination

Generally refers to the process of firm decision-making or the resolving of a problem; in statistics, it may refer to the coefficient of determination.

SSR

Sum of Squared Residuals; a measure of the discrepancy between the data and an estimation model.

F Statistic

The F statistic is a value derived from an ANOVA test used to determine whether the means of several groups are equal by comparing the variance between groups to the variance within groups.