Question 1

The events on Sept 11, 2001 exerted an impact on the economy that could be classiﬁed as:

Accepted Answer

A)  secular trend. 
B)  episodic variation. 
C)  residual variation. 
D)  seasonal variation. 
E)  cyclical variation. 
A)  secular trend. 
B)  episodic variation. 
C)  residual variation. 
D)  seasonal variation. 
E)  cyclical variation.

Question 2

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

Question 3

What is the forecast for year 9?

Accepted Answer

A)  17.100 
B)  28.122 
C)  19.325 
A)  17.100 
B)  28.122 
C)  19.325

Question 4

You are trying to decide in which of the three companies you should invest. Refer to the following
Payoff Table.  
If the probability of the Market rising in the next year is 0.50, which of the following statements are
Correct?
i. The Expected Monetary Value for Company A is $1,450.
ii. The Expected Monetary Value for Company B is $1,600.
iii. The Expected Monetary Value for Company C is $1,475.

Accepted Answer

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

Question 5

i. A typical monthly seasonal index of 107.0 indicates that sales (or whatever the variable is) are 107
Percent above the annual average.
ii. Each typical seasonal index is a percent with the average for the year equal to 100.
iii. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components
From the original data (y).

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 6

What is the correct order of events in a typical business cycle?

Accepted Answer

A)  Prosperity, recession, depression, and recovery 
B)  Depression, recovery, recession, and prosperity 
C)  Recovery, depression, prosperity, and recession 
D)  Recession, recovery, prosperity, and depression 
E)  Recession, depression, and regression 
A)  Prosperity, recession, depression, and recovery 
B)  Depression, recovery, recession, and prosperity 
C)  Recovery, depression, prosperity, and recession 
D)  Recession, recovery, prosperity, and depression 
E)  Recession, depression, and regression

Question 7

A time series is a collection of data that:

Accepted Answer

A)  records past performance. 
B)  records future performance. 
C)  has seasonality removed. 
D)  has irregular variation removed. 
E)  is limited to yearly data. 
A)  records past performance. 
B)  records future performance. 
C)  has seasonality removed. 
D)  has irregular variation removed. 
E)  is limited to yearly data.

Question 8

What is Log10 of the forecast for year 9?
Log10:

Accepted Answer

A)  1.449 
B)  28.122 
C)  3.337 
D)  19.325 
E)  28.12 Multiple Choice Diﬃculty: Medium Learning 
A)  1.449 
B)  28.122 
C)  3.337 
D)  19.325 
E)  28.12 Multiple Choice Diﬃculty: Medium Learning

Question 9

A decision tree:

Accepted Answer

A)  uses a box to indicate the point at which a decision must be made. 
B)  is a picture of all the possible courses of action and the consequent possible outcomes. 
C)  contains branches going out from the box which indicate the alternatives under consideration. 
D)  is a picture of all the possible courses of action and the consequent possible outcomes, uses a box to indicate the point at which a decision must be made and contains branches 
A)  uses a box to indicate the point at which a decision must be made. 
B)  is a picture of all the possible courses of action and the consequent possible outcomes. 
C)  contains branches going out from the box which indicate the alternatives under consideration. 
D)  is a picture of all the possible courses of action and the consequent possible outcomes, uses a box to indicate the point at which a decision must be made and contains branches

Question 10

i. One component of a time series is the secular trend that is the smooth movement of a series over
A short period of time, such as a few months or quarters.
ii. Many business and economic time series have a recurring seasonal pattern.
iii. One component of a time series is cyclical variation. An example of cyclical variation is the
Business cycle that consists of periods of prosperity followed by periods of recession, depression,
And recovery.

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 11

Given the following decision table in which x, y, and z are decision alternatives and A and B are
States of nature.  
Which alternative would be chosen if using the maximax criterion?

Accepted Answer

A)  A 
B)  B 
C)  x 
D)  y 
E)  z 
A)  A 
B)  B 
C)  x 
D)  y 
E)  z

Question 12

Consider the following decision table in which w, x, y, and z are decision alternatives and A and B
Are the two possible states of nature, with probabilities 0.40 and 0.60.  
The expected value for decision Z is ___________.

Accepted Answer

A)  110 
B)  200 
C)  170 
D)  140 
E)  150 
A)  110 
B)  200 
C)  170 
D)  140 
E)  150

Question 13

Given the following decision table in which x, y, and z are decision alternatives and A and B are
States of nature.  
Which alternative would be chosen if using the maximin criterion?

Accepted Answer

A)  A 
B)  B 
C)  x 
D)  y 
E)  z 
A)  A 
B)  B 
C)  x 
D)  y 
E)  z

Question 14

i. Many business and economic time series have a recurring seasonal pattern.
ii. One component of a time series is cyclical variation. An example of cyclical variation is the
Business cycle that consists of periods of prosperity followed by periods of recession, depression,
And recovery.
iii. Episodic and residual variations can be projected into the future.

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 15

You are trying to decide in which of the three companies you should invest. Refer to the following
Payoff Table.  
If the probability of the market declining in the next year is 0.4, which of the following statements
Are correct?
i. The Expected Opportunity Loss for Company A is $120.
ii. The Expected Opportunity Loss for Company B is $120.
iii. The Expected Opportunity Loss for Company C is $440.

Accepted Answer

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

Question 16

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 2007?

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 17

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 18

You are trying to decide in which of the three companies you should invest. Refer to the following
Payoff Table.  
If the probability of the Market rising in the next year is 0.50, which of the following statements are
Correct?
i. The Opportunity Loss for Company A is $1,460.
ii. The Opportunity Loss for Company B is $1,600.
iii. The Opportunity Loss for Company C is $1,475.

Accepted Answer

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

Question 19

If the data appears to be increasing exponentially and we wish to forecast number of passengers
For year 9, we can use Ln and linear regression equation. What is the linear equation for Ln of this
Data?

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 20

Determine the expected proﬁt for the following distribution.

Accepted Answer

A)  $0 
B)  $20 
C)  $30 
D)  $41 
A)  $0 
B)  $20 
C)  $30 
D)  $41

The events on Sept 11, 2001 exerted an impact on the economy that could be classiﬁed as:

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

What is the forecast for year 9?

What is the correct order of events in a typical business cycle?

A time series is a collection of data that:

What is Log10 of the forecast for year 9? Log10:

A decision tree:

Given the following decision table in which x, y, and z are decision alternatives and A and B are States of nature. Which alternative would be chosen if using the maximax criterion?

Consider the following decision table in which w, x, y, and z are decision alternatives and A and B Are the two possible states of nature, with probabilities 0.40 and 0.60. The expected value for decision Z is ___________.

Given the following decision table in which x, y, and z are decision alternatives and A and B are States of nature. Which alternative would be chosen if using the maximin criterion?

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 2007?

If the data appears to be increasing exponentially and we wish to forecast number of passengers For year 9, we can use Ln and linear regression equation. What is the linear equation for Ln of this Data?

Determine the expected proﬁt for the following distribution.

What Is Statistics

Describing Data: Frequencydistributions and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Pata

A Sulvey of Probability Concepts

Discrete Probability Distributions

Continuous Probabilitydistributions

Sampling Methods and the Central Umit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications

Filters

Exam 16: Decision Making and Payoff Tables in Investment Scenarios

The events on Sept 11, 2001 exerted an impact on the economy that could be classiﬁed as:

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

What is the forecast for year 9?

What is the correct order of events in a typical business cycle?

A time series is a collection of data that:

What is Log10 of the forecast for year 9? Log10:

A decision tree:

Given the following decision table in which x, y, and z are decision alternatives and A and B are States of nature. Which alternative would be chosen if using the maximax criterion?

Consider the following decision table in which w, x, y, and z are decision alternatives and A and B Are the two possible states of nature, with probabilities 0.40 and 0.60. The expected value for decision Z is ___________.

Given the following decision table in which x, y, and z are decision alternatives and A and B are States of nature. Which alternative would be chosen if using the maximin criterion?

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 2007?

If the data appears to be increasing exponentially and we wish to forecast number of passengers For year 9, we can use Ln and linear regression equation. What is the linear equation for Ln of this Data?

Determine the expected proﬁt for the following distribution.

What Is Statistics

Describing Data: Frequencydistributions and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Pata

A Sulvey of Probability Concepts

Discrete Probability Distributions

Continuous Probabilitydistributions

Sampling Methods and the Central Umit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications

Filters