Which of the Following Statistics Would NOT Be Useful to Forecast

question 4

Multiple Choice

Which of the following statistics would NOT be useful to forecast currency exchange rates?

• A) the root mean square error
• B) mean absolute deviation
• C) the Sharpe ratio
• D) the covariance with the benchmark currency changes

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Definitions:

State-Dependent Learning

The theory that information learned in a specific state of mind (e.g., emotional, physiological) is more easily recalled when in that same state.

Conditioned Stimulus

An initially neutral signal that, once linked with an unconditioned stimulus, ultimately elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

Response of Interest

The specific reaction or outcome measured in a research study to evaluate the effects of various conditions or treatments.