In Order to Make Reliable Forecasts with Time Series Data

question 9

Multiple Choice

In order to make reliable forecasts with time series data, all of the following conditions are needed with the exception of

• A)coefficients having been estimated precisely.
• B)the regression having high explanatory power.
• C)the regression being stable.
• D)the presence of omitted variable bias.

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Definitions:

Fraud

An intentional deception that causes harm to another.

Material Omission

The failure to disclose important information intentionally or unintentionally, which if known, could influence the decision-making of a party relying on the information.

Securities Transaction

The process of buying, selling, or trading securities, such as stocks or bonds, in financial markets.

Registration Statement

A set of documents, including a prospectus, filed with the Securities and Exchange Commission for a company intending to issue new securities to the public.