Which Statement About Forecast Accuracy Is TRUE

question 19

Multiple Choice

Which statement about forecast accuracy is TRUE?

• A)A manager must be careful not to "overfit" past data.
• B)The ultimate test of forecasting power is how well a model fits past data.
• C)The ultimate test of forecasting power is how a model fits holdout samples.
• D)The best technique in explaining past data is the best technique to predict the future.

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Definitions:

Fractions

Numerical quantities that represent a part of a whole, usually written with a numerator and a denominator.

Multiply

The mathematical operation of increasing one number by another number, essentially repeated addition.

Simplify

To alter a mathematical expression or equation to make it easier to understand or work with by reducing it to its most basic form.

Multiply

The mathematical operation of repeated addition of a number by itself a specified number of times.