Testing for a Forecast Bias. You must determine whether there is a forecast bias in the forward rate. You apply regression analysis to test the relationship between the actual spot rate and the forward rate forecast (F):

S ¼ a0 þ a1ðFÞ

The regression results are as follows:

Based on these results, is there a bias in the forecast?

Verify your conclusion. If there is a bias, explain whether it is an overestimate or an underestimate.