You are a managing director at a boutique investment bank in Los Angeles. Each day your two interns give you a one-day-ahead forecast of the Euro/Dollar exchange rate. At the end of the day, you compare their forecasts to the actual exchange rate. If their forecasts are accurate, you reward them with a bonus. What is the purpose of comparing the interns' forecasts to the actual exchange rate?
1) To determine the accuracy of the interns' forecasts
2) To punish the interns for inaccurate forecasts
3) To determine the bonus amount for the interns
4) To evaluate the performance of the interns