Question

Which of the following is not helpful in generating forecasts of

cycle factors?

a.A time-series plot of the data
b.Length of previous cycles
c.Amplitude of previous cycles
d.The prime rate of

Answer 1

The prime rate is not helpful in generating forecasts of cycle factors because it is an interest rate not directly related to cyclical patterns in data, unlike time-series plots, lengths, and amplitudes of previous cycles.

Step-by-step explanation:

The question you are asking pertains to the factors that contribute to accurate forecasting of cycle factors. In forecasting cycle factors, items such as a time-series plot of the data, the length of previous cycles, and the amplitude of previous cycles are very helpful. These factors can display patterns, duration, and intensities of historical cycles which are vital for predicting future cycles. However, the prime rate is a benchmark interest rate used by banks and does not directly help in forecasting cyclical patterns of a time series. Therefore, the prime rate is not helpful in generating forecasts of cycle factors.