Question

In: Finance

Accuracy of the output is determined by the accuracy of the _______ and the validity of...

Accuracy of the output is determined by the accuracy of the _______ and the validity of the ______.

Interpretation by the decision maker, intuition

Model, input data

Data result, software used

Testing, application used


Solutions

Expert Solution

Accuracy of the output is always determined by the accuracy of the model and validity of the input data because when the input data would be valid and the model will be accurate, it will mean that the output will be close to accurate because forecasting is not an easy piece of cake and it will involve accuracy on the part of input data and modelling also.

All the other options are false.

Correct answer will be option (B) Model, Input Data.


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