Long-term forecasts are usually less accurate than short-term forecasts because

A) short-term forecasts have a larger standard deviation of error relative to the mean than long-term forecasts.
B) short-term forecasts have more standard deviation of error relative to the mean than long-term forecasts.
C) long-term forecasts have a smaller standard deviation of error relative to the mean than short-term forecasts.
D) long-term forecasts have a larger standard deviation of error relative to the mean than short-term forecasts.

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Adrienne Michelle · Accepted Answer

Final Answer : D, Explanation :  Long-term forecasts are subject to more uncertainty because there are more variables that can affect the forecast outcome over a longer period of time. This results in a larger standard deviation of error relative to the mean than short-term forecasts, making them less accurate. Short-term forecasts have less time for unforeseen events to affect the outcome and therefore have a smaller standard deviation of error.

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