Given Forecast Errors of 5, 0, -4, and 3, What

question 15

Multiple Choice

Given forecast errors of 5, 0, -4, and 3, what is the bias?

• A) -4
• B) 4
• C) 5
• D) 12
• E) 6

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Definitions:

Investment

The allocation of resources, such as capital or time, into a venture with the expectation of generating future returns.

Retained Earnings

The portion of net income that is not distributed to shareholders but instead reinvested back into the company.

Tangible Capital

Physical assets owned by a firm that are used in the production process, such as buildings, machinery, and equipment.

Opportunity Costs

The cost associated with not choosing the next best alternative in a decision-making process.