Which of the Following Is a Criticism Made of Qualitative

question 20

Multiple Choice

Which of the following is a criticism made of qualitative forecasts?

• A) They become the only possible forecast when past data are either not available or are misleading.
• B) They provide no guidance on the likely effects of changes in explanatory variables.
• C) They are prone to biases such as optimism and overconfidence.
• D) They are difficult to document.

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Definitions:

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both sides of the sampling distribution, allowing for the possibility of an effect in two directions.

Independent Populations

Populations in which the outcomes or characteristics of a sample from one population are not affected by the outcomes or characteristics of a sample from another population.

Sampling Distribution

The probability distribution of a given statistic based on a large number of samples from the same population.

Sample Mean Difference

The difference between the means of two samples, used in hypothesis testing and estimation.