Econometric forecasting methods are most valuable when the stochastic error term:
A)is small and randomly distributed.
B)is large and randomly distributed.
C)is large and not randomly distributed.
D)has an expected value of zero.

Name: Econometric forecasting methods are most valuable when the stochastic error term: A)is small and randomly distributed. B)is large and randomly distributed. C)is large and not randomly distributed. D)has an expected value of zero.
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Question

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The Answer is A

Econometric Forecasting Methods Are Most Valuable When the Stochastic Error