You are hired as a consultant to assess a firm's ability to forecast. The firm has developed a point forecast for two different currencies presented in the following table. The firm asks you to determine which currency was forecasted with greater accuracy. Do not round intermediate calculations. Round your answers to two decimal places. Actual Yen Value Period 1 Yen Forecast Pound Forecast Actual Pound Value $0.0053 $0.0056 $1.47 $1.56 2 $0.0052 $0.0054 $1.54 $1.57 3 $0.0055 4 $0.0054 $0.0051 $0.0053 $1.51 $1.58 $1.55 $1.50 The mean absolute forecast error as a percentage of the realized yen value is %. The mean absolute forecast error as a percentage of the realized pound value is %. Because the mean absolute forecast error as a percentage of the realized pound value is Select than that of the yen, the Select was forecasted with greater accuracy.
You are hired as a consultant to assess a firm's ability to forecast. The firm has developed a point forecast for two different currencies presented in the following table. The firm asks you to determine which currency was forecasted with greater accuracy. Do not round intermediate calculations. Round your answers to two decimal places. Actual Yen Value Period 1 Yen Forecast Pound Forecast Actual Pound Value $0.0053 $0.0056 $1.47 $1.56 2 $0.0052 $0.0054 $1.54 $1.57 3 $0.0055 4 $0.0054 $0.0051 $0.0053 $1.51 $1.58 $1.55 $1.50 The mean absolute forecast error as a percentage of the realized yen value is %. The mean absolute forecast error as a percentage of the realized pound value is %. Because the mean absolute forecast error as a percentage of the realized pound value is Select than that of the yen, the Select was forecasted with greater accuracy.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
None
Transcribed Image Text:You are hired as a consultant to assess a firm's ability to forecast. The firm has developed a point forecast for two different currencies presented in the following table. The firm asks you to
determine which currency was forecasted with greater accuracy. Do not round intermediate calculations. Round your answers to two decimal places.
Period
Yen Forecast
Actual Yen
Value
Pound
Forecast
Actual Pound
Value
1
$0.0053
$0.0056
$1.47
$1.56
2
$0.0052
$0.0054
$1.54
$1.57
3
$0.0055
$0.0051
$1.51
$1.58
4
ps
$0.0054
$0.0053
$1.55
$1.50
The mean absolute forecast error as a percentage of the realized yen value is
%-
ps
The mean absolute forecast error as a percentage of the realized pound value is
%.
Because the mean absolute forecast error as a percentage of the realized pound value is Select than that of the yen,
the -Select- was forecasted with greater accuracy.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education