If F_t Denotes the Forecast of Y_t+1 Made at Time

question 24

Multiple Choice

If f_t denotes the forecast of y_t+1 made at time t, then the forecast error is given by:

• A)e_t+1 = f_t/y_t+1.
• B)e_t+1 = y_t+1/f_t.
• C)e_t+1 = y_t+1 + f_t.
• D)e_t+1 = y_t+1 - f_t.

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