NO.PZ202105270100000203
问题如下:
Cambo compares her business cycle forecasting approach to the approach used by the chief economist. Cambo bases her equity market forecast on a time-series model using a composite index of leading indicators as the key input, whereas the chief economist uses a detailed econometric model to generate his economic forecasts.
Discuss strengths and weaknesses of the economic forecasting approaches used by Cambo and the chief economist.
选项:
解释:
(1)Leading indicator-based approach
Strengths:simple and datas are available from third party. the method can forecast the turning potint
Weakness: Little more than binary result. Can provide false signal.Overfitted in sample.
(2)Economic forecasting approaches
Strengths: The model can be robust.Quantative estimation. Impose consistency on analysis.
Weakness:False sense of precion. Complex and time-consuming. Can't predicting the turning points.