Since exchange rate forecasts are not always accurate, a probability distribution of possible exchange rates may be preferable to a single point estimate.

Question

Since exchange rate forecasts are not always accurate, a probability distribution of possible exchange rates may be preferable to a single point estimate.
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Quizplus · Accepted Answer

This statement is true. Because exchange rates can be influenced by a wide range of unpredictable factors, it can be difficult to make accurate forecasts. Using a probability distribution to show a range of possible outcomes can provide a more realistic and useful perspective for decision making.

Since Exchange Rate Forecasts Are Not Always Accurate, a Probability