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

---

Definitions:

Expected Number

The calculated average or mean value of a numerical random variable, representing what one expects to happen over numerous trials.

Probability Distribution

A statistical function detailing all potential values and their probabilities for a random variable within a specific range.

Probability Distribution

A mathematical function which calculates the likelihood of various possible results in an experiment.

Blackjack

A casino card game where players try to achieve a hand value as close to 21 as possible without exceeding it.