Problems in forecasting include:
A) estimates becoming more reliable the further you forecast into the future
B) specification error
C) cyclical variation
D) both a and b
E) all of the above

Question

Quizplus · Accepted Answer

Estimates do not become more reliable as you forecast further into the future, and specification errors can occur when choosing the wrong model or variables to use in forecasting. Cyclical variation is also a problem as it can be difficult to predict the ups and downs of the economy or other factors being forecasted.

Problems in Forecasting Include