Question: A major issue associated with using an estimated sample regression function for forecasting a value of the dependent variable beyond the boundaries of the sample
A major issue associated with using an estimated sample regression function for forecasting a value of the dependent variable beyond the boundaries of the sample used to estimate the equation is that:
a the forecast will not have minimum variance
b the forecast will be biased
c the standard error of the forecast will grow markedly the further the respective values of the independent variables are from their sample means
d the ability to derive a precise forecast of the dependent variable falls quickly the further the respective values of the independent variables are from their sample means
e c and d
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