5.82 An analyst forecasts corporate earnings, and her record is evaluated by comparing actual earnings with predicted
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5.82 An analyst forecasts corporate earnings, and her record is evaluated by comparing actual earnings with predicted earnings. Define the following:
actual earnings = predicted earnings + forecast error If the predicted earnings and forecast error are independent of each other, show that the variance of predicted earnings is less than the variance of actual earnings.
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Related Book For
Statistics For Business And Economics
ISBN: 9780273767060
8th Global Edition
Authors: Paul Newbold, Mr William Carlson, Ms Betty Thorne
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