7. Graphic evaluation of forecast bias 1. 2. 3. STEP: 1 of 3 Suppose that Kent Co. is a US-based MNC that is evaluating its forecasts of the British pound. This MNC wishes to perform a graphical analysis as part of the evaluation The following graph measures the forecasted value of the pound, while the vertical axis measures the realized value of the pound. On the following graph, use the blue line (circle symbols) to plot the perfect forecast line. Then, use the purple point (diamond symbol) to shade the region of the graph that corresponds to the region of upward bias. Finally, use the gray point (star symbol) to shade the area corresponding to the region of downward bias ( 10 er pound Perfect Forecast Line Chapter 9 Assignment region of downward bias. 157 1.0 Perfect Forecast Line 15 14 Region of upward bias REALIZED VALUE (U.S. Dollars per pound) 13 1.2 Region of downward blas 11 10 0.0 09 10 1.1 12 1.3 14 15 1.6 1.7 PREDICTED VALUE (US. Dollars per pound) TOTALCAR