Forecasts are always wrong and therefore
A)should include both the expected value of the forecast and a measure of forecast error.
B)should not include both the expected value of the forecast and a measure of forecast error.
C)should only be used when there are no accurate estimates.
D)should be missing the expected value of the forecast and a measure of forecast error.

Question

Quizplus · Accepted Answer

Forecasts are always subject to uncertainty and error. Therefore, a good forecast should include not only the expected value of the forecast but also a measure of forecast error to communicate the level of uncertainty to decision-makers. By doing so, decision-makers can make informed decisions based on the level of risk involved. Therefore, option A is the best choice.

Forecasts Are Always Wrong and Therefore