The Following Is Not a Limitation of Technical Forecasting

question 88

Multiple Choice

The following is not a limitation of technical forecasting:

• A) It's not suitable for long-term forecasts of exchange rates.
• B) It doesn't provide point estimates or a range of possible future values.
• C) It cannot be applied to currencies that exhibit random movements.
• D) It cannot be applied to currencies that exhibit a continuous trend for short-term forecast.

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Definitions:

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, no barriers to entry, and the product is homogeneous, leading to no control over price by individual firms.

Market Price

The contemporary selling or buying price for an asset or service.

Profit-Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profit under given conditions.

Incur A Loss

The situation in which the costs of operating a business exceed the revenues, leading to negative profits.