Forecast Errors

question 20

Multiple Choice

Forecast errors

• A)are the difference in successive values of a time series.
• B)are the differences between actual and forecast values.
• C)should all be nonnegative.
• D)should be summed to judge the goodness of a forecasting model.

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Definitions:

Rational Economics

An approach to understanding economic behavior that assumes individuals act based on logical calculations to maximize utility or profit.

Socialism

A political and economic theory advocating for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Economic Theories

The body of knowledge concerning the production, consumption, and transfer of wealth, formulated as models and principles that aim to explain economic behaviors and predict outcomes.

Power Distribution

The way in which authority, influence, and resources are allocated and exercised within an organization or society.