Question

An analyst forecasts corporate earnings, and her record is evaluated by comparing actual earnings with predicted earnings. Define the following:
actual earnings = predicted earnings + forecast error.
If the predicted earnings and forecast error are independent of each other, show that the variance of predicted earnings is less than the variance of actual earnings.


$1.99
Sales0
Views45
Comments0
  • CreatedJuly 07, 2015
  • Files Included
Post your question
5000