Info

Correlation 99.92% Mean squared error $2,426.62

Correlation 99.92% Mean squared error $2,426.62

The correlation coefficient between actual and constant growth model forecast GDP is rGDP, FGDP = 99.92%. The sample root mean squared forecast error is $2,426.6 billion ( = V $5,888,477.2), or 27.5% of average actual GDP over the 1996-2000 period. Thus, despite the fact that the correlation between actual and constant growth forecast model values is relatively high, forecast error is also very high. Unusually modest economic growth during the early 1990s has led to large forecast errors when data from more rapidly growing periods, like the 1980s, are used to forecast economic growth.

Was this article helpful?

0 0
Your Retirement Planning Guide

Your Retirement Planning Guide

Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.

Get My Free Ebook


Post a comment