Aggregate Forecasts Are Usually More Accurate Than Disaggregate Forecasts Because

question 52

Multiple Choice

Aggregate forecasts are usually more accurate than disaggregate forecasts because

• A)aggregate forecasts tend to have a larger standard deviation of error relative to the mean.
• B)aggregate forecasts tend to have a smaller standard deviation of error relative to the mean.
• C)disaggregate forecasts tend to have a smaller standard deviation of error relative to the mean.
• D)disaggregate forecasts tend to have less standard deviation of error relative to the mean.

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Definitions:

Average Operating Assets

The average value of assets used in the production process or in generating sales, calculated over a specific period.

Margin

Net operating income divided by sales.

Average Operating Assets

The average value of assets used during a specific period in the day-to-day operations of a business.

Net Operating Income

An entity's income from operations, calculated by subtracting operating expenses from revenues generated from normal business operations, excluding non-operating income and expenses.