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Aggregate Forecasts Are Always Better Than the Set of Component

Question 55

Multiple Choice

Aggregate forecasts are always better than the set of component forecasts because the standard deviation of the total (T) of (n) components is equal to the _____ multiplied by the standard deviation of the individual components.


A) square root of St
B) square root of T
C) square root of Pt
D) square root of n

Correct Answer:

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