A Danger of Forecasting Discussed in the Text Is That

question 109

Multiple Choice

A danger of forecasting discussed in the text is that

• A)in most cases, the expense of collecting the necessary data exceeds the benefit.
• B)the retrospective nature of forecasting provides little information about the future.
• C)managers may view uncertainty as black and white while ignoring important gray areas.
• D)it can create legal problems for the firm if regulators discover the company is making forecasts.

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Definitions:

P-value

A measure that indicates the probability of obtaining the observed data, or something more extreme, if the null hypothesis is true.

Sampling Variation

The variability of sample statistics from sample to sample due to random selection in the sampling process.

Null Hypotheses

A statistical hypothesis that assumes no significant difference or effect exists within a set of observations.

Alternative Hypotheses

In hypothesis testing, statements that are accepted if the evidence provides sufficient support for them being true, as opposed to the null hypothesis.