Question 1

What is the long-term behavior of a variable over an extended period of time called?

Accepted Answer

A)  Secular trend 
B)  Seasonal variation 
C)  Cyclical variation 
D)  Irregular or variation 
E)  Episodic variation 
A)  Secular trend 
B)  Seasonal variation 
C)  Cyclical variation 
D)  Irregular or variation 
E)  Episodic variation A

Question 2

i. The moving average method merely smoothes out the fluctuations in the data. 
ii. To apply the moving average method to a time series, the data should follow a linear trend and have a definite rhythmic pattern of fluctuations that repeat (say, every three years).
Iii) Sales, production and other economic and business series usually have periods of oscillation that are of equal length or identical amplitudes.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false B

Question 3

i. The moving average method averages out cyclical (C) and irregular (I) components. 
ii. To apply the moving average method to a time series, the data should follow a linear trend and have a definite rhythmic pattern of fluctuations that repeat (say, every three years).
iii. Sales, production and other economic and business series usually have periods of oscillation that are of equal length or identical amplitudes.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false B

Question 4

i. In a time series analysis, the letter "a" in the linear trend equation, is the value of   when t = 0.t2 ii. In the linear trend equation, the letter "b" is the average change in t for each change of one unit (either increase or decrease) in y. 
iii. In the linear trend equation, t is any value that corresponds with a time period, (i.e. month or quarter.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 5

A plastics manufacturing performed a quarterly time series analysis for demands over the last five years (periods 1 through 20). The analysis resulted in the following trend equation and seasonal indexes:   = 920.0 + 22.6 t   Based on the seasonal indexes, which quarter is expect to have 21% more demand than predicted by the trend line?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
E)  1 and 3 
A)  1 
B)  2 
C)  3 
D)  4 
E)  1 and 3

Question 6

For a time series beginning with 1988 and extending up to 2001, which year would be coded with a one when using the coded method?

Accepted Answer

A)  1986 
B)  1988 
C)  1989 
D)  1998 
E)  1996 
A)  1986 
B)  1988 
C)  1989 
D)  1998 
E)  1996

Question 7

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data)   What are deseasonalized sales for quarter 2?

Accepted Answer

A)  973.1 
B)  1052.5 
C)  1291.5 
D)  1012.0 
E)  1027.7 
A)  973.1 
B)  1052.5 
C)  1291.5 
D)  1012.0 
E)  1027.7

Question 8

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data)   Overall, based on these four quarters, sales:

Accepted Answer

A)  are definitely increasing. 
B)  are definitely decreasing. 
C)  are constant. 
D)  are exponentially decreasing. 
E)  cannot be determined 
A)  are definitely increasing. 
B)  are definitely decreasing. 
C)  are constant. 
D)  are exponentially decreasing. 
E)  cannot be determined

Question 9

Why are long range predictions considered essential to managing a firm?

Accepted Answer

A)  To develop plans for possible new plants. 
B)  To have raw materials available for future demand 
C)  To develop plans for future financing. 
D)  To have enough staff for future needs. 
E)  All of the choices are correct 
A)  To develop plans for possible new plants. 
B)  To have raw materials available for future demand 
C)  To develop plans for future financing. 
D)  To have enough staff for future needs. 
E)  All of the choices are correct

Question 10

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003.   Using the printout below, what are the estimated sales for 2009?

Accepted Answer

A)  $90,618.6 Million 
B)  $97,082.5 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million 
A)  $90,618.6 Million 
B)  $97,082.5 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million

Question 11

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003.   Using the printout below, what are the estimated sales for 2008?

Accepted Answer

A)  $90,618.6 Million 
B)  $97,082.5 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million 
A)  $90,618.6 Million 
B)  $97,082.5 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million

Question 12

i. In the linear trend equation, the letter "b" is the average change in t for each change of one unit (either increase or decrease) in y.
ii. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter.
iii. The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 13

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data)   What are deseasonalized sales for quarter 3?

Accepted Answer

A)  251.2 
B)  944.8 
C)  988.4 
D)  1147.2 
E)  1196.0 
A)  251.2 
B)  944.8 
C)  988.4 
D)  1147.2 
E)  1196.0

Question 14

Economic periods of prosperity followed by recession are described as:

Accepted Answer

A)  Secular trend 
B)  Seasonal variation 
C)  Cyclical variation 
D)  Episodic variation 
E)  Irregular variation 
A)  Secular trend 
B)  Seasonal variation 
C)  Cyclical variation 
D)  Episodic variation 
E)  Irregular variation

Question 15

A plastics manufacturing performed a quarterly time series analysis for demands over the last five years (periods 1 through 20). The analysis resulted in the following trend equation and seasonal indexes:   = 920.0 + 22.6 t   If demand for period 19 was actually 1,000, what was the deseasonalized demand?

Accepted Answer

A)  1045.95 
B)  1394.60 
C)  750.00 
D)  1333.33 
E)  1859.47 
A)  1045.95 
B)  1394.60 
C)  750.00 
D)  1333.33 
E)  1859.47

Question 16

i. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components from the original data (y).
Ii) The cyclical component of a time series is described in terms relative to the seasonal index. 
iii. The irregular component of a time series is the easiest to measure.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) is a correct statement but not (ii) or (iii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) is a correct statement but not (ii) or (iii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 17

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003.   Using the printout below, what are the estimated sales for 2006?

Accepted Answer

A)  $90,618.6 Million 
B)  $477,690.9 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million 
A)  $90,618.6 Million 
B)  $477,690.9 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million

Question 18

i. The irregular component of a time series is the easiest to measure. 
ii. The ratio-to-moving average method removes the time series trend component, resulting in 12 numbers that are called specific seasonals.
Iii) For a quarterly time series, the initial step, using the ratio-to-moving average method, is to remove the seasonal components from the time series using a 3-month centered moving average.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are incorrect statements, but (iii) is correct. 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are incorrect statements, but (iii) is correct. 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 19

i. A typical monthly seasonal index of 107.0 indicates that sales (or whatever the variable is) are 7 percent above the annual average).
ii. For a quarterly time series, the initial step, using the ratio-to-moving average method, is to remove the seasonal components from the time series using a 3-month centered moving average)
iii. In the final step, using the ratio-to-moving-average method on quarterly data, the total of the modified means should theoretically be equal to 400 because the average of should be 100.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 20

i. The ratio-to-moving average method removes the time series trend component, resulting in 12 numbers that are called specific seasonals.
ii. For a quarterly time series, the initial step, using the ratio-to-moving average method, is to remove the seasonal components from the time series using a 3-month centered moving average)
iii. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend)

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (ii) is a correct statement, but (i) and (iii) are incorrect. 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (ii) is a correct statement, but (i) and (iii) are incorrect.

What is the long-term behavior of a variable over an extended period of time called?

For a time series beginning with 1988 and extending up to 2001, which year would be coded with a one when using the coded method?

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data) What are deseasonalized sales for quarter 2?

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data) Overall, based on these four quarters, sales:

Why are long range predictions considered essential to managing a firm?

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003. Using the printout below, what are the estimated sales for 2009?

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003. Using the printout below, what are the estimated sales for 2008?

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data) What are deseasonalized sales for quarter 3?

Economic periods of prosperity followed by recession are described as:

i. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components from the original data (y). Ii) The cyclical component of a time series is described in terms relative to the seasonal index. iii. The irregular component of a time series is the easiest to measure.

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003. Using the printout below, what are the estimated sales for 2006?

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications for Nominal Data

Index Numbers

An Introduction to Decision Theory

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Exam 16: Time Series and Forecasting

What is the long-term behavior of a variable over an extended period of time called?

For a time series beginning with 1988 and extending up to 2001, which year would be coded with a one when using the coded method?

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data) What are deseasonalized sales for quarter 2?

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data) Overall, based on these four quarters, sales:

Why are long range predictions considered essential to managing a firm?

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003. Using the printout below, what are the estimated sales for 2009?

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003. Using the printout below, what are the estimated sales for 2008?

The table below shows the sales for a plastics manufacturer recorded over the past year. The seasonal indexes for each quarter are also provided). To track the trend for these four quarters, use the indexes to deseasonalize the sales data) What are deseasonalized sales for quarter 3?

Economic periods of prosperity followed by recession are described as:

i. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components from the original data (y). Ii) The cyclical component of a time series is described in terms relative to the seasonal index. iii. The irregular component of a time series is the easiest to measure.

Listed below is the net sales in $ million for Home Depot Inc., and its subsidiaries from 1994 to 2003. Using the printout below, what are the estimated sales for 2006?

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications for Nominal Data

Index Numbers

An Introduction to Decision Theory

Filters