Make Predictions Using Models

What do predictive models primarily rely on to forecast future events?

• Historical data and known rules

• Random guesses

• Current weather conditions

• Expert opinions

Which of the following is NOT a source of uncertainty in predictive models?

• Human error in data collection

• Accuracy of measuring equipment

• Predictive model influencing the outcome

• Perfect data collection

What does the 'cone of uncertainty' represent in prediction models?

• The predicted track of a hurricane

• The accuracy of measuring equipment

• The historical data used in models

• The random behavior of the system

In a fan chart representing economic inflation, what do the darker colors indicate?

• More likely outcomes

• Less likely outcomes

• Historical data

• Random guesses

What does a spaghetti plot illustrate in predictive modeling?

• Forecasts for atmospheric pressure

• The accuracy of data collection devices

• The historical conditions of a system

• The rules and relationships among variables