Question
You are hired as a consultant to assess a firm's ability to forecast. The firm has developed a point forecast for two different currencies presented
You are hired as a consultant to assess a firm's ability to forecast. The firm has developed a point forecast for two different currencies presented in the following table. The firm asks you to determine which currency was forecasted with greater accuracy. Do not round intermediate calculations. Round your answers to two decimal places.
Period | Yen Forecast | Actual Yen Value | Pound Forecast | Actual Pound Value |
1 | $0.0050 | $0.0052 | $1.54 | $1.57 |
2 | $0.0054 | $0.0055 | $1.49 | $1.53 |
3 | $0.0048 | $0.0056 | $1.45 | $1.51 |
4 | $0.0052 | $0.0053 | $1.55 | $1.57 |
The mean absolute forecast error as a percentage of the realized yen value is %.
The mean absolute forecast error as a percentage of the realized pound value is %.
Because the mean absolute forecast error as a percentage of the realized pound value is -Select- higher, or lower than that of the yen, the -Select-yen, pound was forecasted with greater accuracy
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started