One of the Characteristics of Forecasts Is

question 29

Multiple Choice

One of the characteristics of forecasts is

• A)aggregate forecasts are usually less accurate than disaggregate forecasts.
• B)disaggregate forecasts are usually more accurate than aggregate forecasts.
• C)short-term forecasts are usually less accurate than long-term forecasts.
• D)long-term forecasts are usually less accurate than short-term forecasts.

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Definitions:

Adverse Selection

A situation in which sellers have information that buyers do not, leading to transactions that favor the seller.

Insurance

A monetary service that offers coverage against possible future harms or losses in return for a premium payment.

Adverse Selection

Adverse selection is a situation in financial markets where there is asymmetric information leading buyers or sellers to make decisions that can result in the market becoming skewed or unbalanced, often seen in insurance markets.

Insurance

A contract represented by a policy, where an individual or entity receives financial protection or reimbursement against losses from an insurance company.