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The Accuracy of an Econometric Forecast Would Be Most Questionable

Question 3

Multiple Choice

The accuracy of an econometric forecast would be most questionable when the:


A) stochastic error term is small and randomly distributed.
B) stochastic error term is large and randomly distributed.
C) stochastic error term is large and not randomly distributed.
D) expected value of the stochastic error term equals zero.

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