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Which of the Following Scenarios Shows a Relatively Noisy Signal

Question 93

Multiple Choice

Which of the following scenarios shows a relatively noisy signal of a future outcome?


A) Your current GPA is 3.94, and you are expected to graduate in two months. Although your current classes are not yet completed, your advisor has to make a forecast about your grades for this semester. She forecasts that you will get As in all your current courses and will graduate with honors.
B) Your current credit rating is low. You have a history of late payments, and debts that have gone to collection agencies. You are denied new credit because the credit card company forecasts that you will become delinquent on the payments.
C) In February of 2009 you produce and release a movie about President Barack Obama 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) You are a speculator, and you decide to buy up corn futures because the government has mandated that all new vehicles must use corn-based fuels within one year.

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