Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital As Power

Authors: Jonathan Nitzan, Shimshon Bichler

1st Edition

0415496802, 978-0415496803

More Books

Students also viewed these Finance questions

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago