Studies of the Accuracy of Paid Exchange Rate Forecasters

question 20

Multiple Choice

Studies of the accuracy of paid exchange rate forecasters

• A)tend to support the view that "you get what you pay for".
• B)tend to support the view that forecasting is easy,at least with regard to major currencies like the euro and Japanese yen.
• C)tend to support the view that banks do their best forecasting with the yen.
• D)none of the options

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Definitions:

Predicted Income

An estimate of future income based on variables such as education, occupation, and previous earnings.

Correlation

A statistical measure that expresses the extent to which two variables change together, suggesting a possible relationship between them.

Prediction Error

The difference between an observed value and the value predicted by a model.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.