Which of the following is true regarding earnings forecasts made by analysts versus forecasts made by statistical models?
A)The evidence tends to support analysts' forecasts in terms of accuracy over statistical models.
B)The evidence tends to support statistical models' forecasts in terms of accuracy over statistical models.
C)The evidence tends to support both types of forecasts equally.
D)The evidence does not support either type of forecast in terms of accuracy.

Question

Quizplus · Accepted Answer

Evidence generally shows that analysts' forecasts tend to be more accurate than statistical models, although both types of forecasts can be subject to biases and errors. This is likely because analysts have access to more information and can incorporate non-financial factors, such as industry trends or company strategy, into their forecasts.

Which of the Following Is True Regarding Earnings Forecasts Made