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.

Question

Quizplus · Accepted Answer

Omitted variable bias can cause unreliable forecasts, so it is not a condition that is needed. The other three conditions (precise coefficient estimates, high explanatory power, and stable regression) are all important for making reliable forecasts with time series data.

In Order to Make Reliable Forecasts with Time Series Data