In Order to Make Reliable Forecasts with Time Series Data

question 9

Multiple Choice

In order to make reliable forecasts with time series data, all of the following conditions are needed with the exception of

• A)coefficients having been estimated precisely.
• B)the regression having high explanatory power.
• C)the regression being stable.
• D)the presence of omitted variable bias.

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Definitions:

Proximity Switch

A device that detects the presence or absence of an object or material without physical contact, often used in industrial applications for automation.

Sound Waves

Mechanical vibrations that travel through a medium such as air, water, or solid materials, and can be heard when they reach a human or animal ear.