Which of the Following Does Not Indicate the Relative Accuracy

question 37

Multiple Choice

Which of the following does not indicate the relative accuracy of an economic forecast?

• A) composite index.
• B) sample mean forecast error.
• C) stochastic error term.
• D) simple correlation coefficient.

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Definitions:

Simple Interest

A method to calculate interest where the interest payment is a fixed percentage of the principal amount that does not change over the life of the loan or investment.

Interest

Interest is the cost of borrowing money, expressed as a percentage of the borrowed sum, paid by the borrower to the lender for the use of the money over a specified period.

Lump Sum

A one-time transaction executed at a specific moment, rather than multiple transactions spread out over a period.

Rate Of Return

The profit or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.