Which scenario shows a relatively noisy signal of a future outcome?
A) Jill's current GPA is 3.94, and she is expected to graduate in two months. Although her current classes are not yet completed, her advisor has to make a forecast about her grades for this semester. Her advisor forecasts that she will get As in all her current courses and will graduate with honors.
B) Alex's current credit rating is low. She has a history of late payments, and debts that have gone to collection agencies. She is denied new credit because the credit card company forecasts that she will become delinquent on the payments.
C) In February of 2009 Bill produces and releases a movie about the current President of the United States that projects what two terms of his leadership and polices might look like in terms of foreign relations, and the economic path the United States will follow out of the recession.
D) John is a speculator, and he decides to buy up corn futures because the government has mandated that all new vehicles must use corn-based fuels within one year.

Question

Quizplus · Accepted Answer

The scenario involving Bill's movie about the future presidency is relatively noisy because it involves projecting complex and uncertain political and economic outcomes over a long period, which are inherently unpredictable and subject to many variables.

Which Scenario Shows a Relatively Noisy Signal of a Future