Which of the Following Is TRUE About Using Forecasts

question 105

Multiple Choice

Which of the following is TRUE about using forecasts?

• A) Multiple forecasts are best, and their predictions can be averaged.
• B) Forecasts become more accurate the further into the future you predict.
• C) Forecasts improve the data used to construct them.
• D) The more complex the forecast, the more carefully the math is designed, and the more accurate the forecast becomes.
• E) Unexpected events require a company to stick to the forecast.

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Definitions:

Amendment

A formal change or addition proposed or made to a document, law, or legislative bill.

Federal Funds

Reserve balances that commercial banks hold at Federal Reserve Banks, often referred to in the context of the federal funds rate, which is the interest rate at which banks lend to each other overnight.

Income Tax

Tax levied by a government directly on income, including wages, salaries, and investments.

Constitution

The fundamental principles and established precedents according to which a state or other organization is governed.