Based on economist Richard Roll's work, the BEST way to predict future weather in Florida, where oranges are grown, may be:
A) to listen to meteorologists.
B) to look at the difference between futures and spot prices of orange juice.
C) to wait and see what the weather turns out to be.
D) to look at past trends in orange production.

Question

Quizplus · Accepted Answer

Richard Roll's work suggests that the best way to predict future weather in Florida is to look at the difference between futures and spot prices of orange juice. This is because weather conditions have a direct impact on the supply and demand of oranges, which in turn affects the price of orange juice futures. Therefore, this difference can serve as a good indicator of expected weather conditions in the future.

Based on Economist Richard Roll's Work, the BEST Way to Predict