Suppose pl and p2 are two forecast statistics (formulae) - independent of each other - for the variable X. Assume both pl and p2 are unbiased forecasts and they have the same forecast variance v. p1+p2 Consider the mean of the two forecasts: 2 Let's call this MP. i. Is MP unbiased? How do you know? ii. What is the variance of MP? How do you know? iii. Based on the answers in parts (a) and (b) above, is MP any better in forecasting X? Why or why not?

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