What Are Predictions Based on Time-Series Information

question 70

Multiple Choice

What are predictions based on time-series information?

• A) Prediction
• B) Optimization
• C) Forecasting
• D) Regression

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Definitions:

Annual Net Cash Flows

This term refers to the amount of money that flows in and out of a business over a year after all expenses have been accounted for.

Expected Total Cash Flows

An estimation of all cash inflows and outflows associated with an investment over its expected life, used to gauge its profitability.

Average Rate of Return

A financial ratio indicating the average annual return earned through an investment over its lifetime, expressed as a percentage of the initial investment cost.

Net Income

The total earnings of a company after subtracting all costs and expenses from revenue.