Question 1

If time-series data exhibit a seasonal pattern,which of the following approaches could be used to compute season indexes?

Accepted Answer

A) The exponential smoothing technique 
B) The multiplicative model 
C) The Pearson product-moment approach 
D) None of the above. 
A) The exponential smoothing technique 
B) The multiplicative model 
C) The Pearson product-moment approach 
D) None of the above.

Question 2

The Wilson Company is interested in forecasting demand for its XG-667 product for quarter 13 based on 12 quarters of data.The following shows the data and the double exponential smoothing model results for periods 1-12 using alpha = 0.20 and beta = 0.40.   Based on this information,what is the difference between the forecast for period 13 using smoothing constants of alpha = 0.20 and beta = 0.40 and smoothing constants of alpha = 0.10 and beta = 0.30? (Assume that the starting values for period 0 are C = 745 and T = 32.)

Accepted Answer

A) About 108 units 
B) Approximately 9 units 
C) Just under 32 units 
D) About 85 units 
A) About 108 units 
B) Approximately 9 units 
C) Just under 32 units 
D) About 85 units

Question 3

A company has developed a linear trend regression model based on 16 quarters of data.The independent variable is the measure of time (t = 1 thru 16 where quarter 1 is winter quarter,2 is spring,etc.).The company has also developed seasonal indexes for each quarter as follows:   The linear trend forecast equation is:   = 120 + 56t. Given this information,what is the seasonally unadjusted forecast for period 19?

Accepted Answer

A) 1,064 
B) 1,184 
C) 828.80 
D) 986.7 
A) 1,064 
B) 1,184 
C) 828.80 
D) 986.7

Question 4

Under which of the following conditions would you suggest that a double exponential smoothing model should be used instead of a single exponential smoothing model?

Accepted Answer

A) When the time-series data exhibit a trend 
B) When there are two main time-series variables involved in the forecast application 
C) When the data exhibit only random variation 
D) When the data set is extremely uneven 
A) When the time-series data exhibit a trend 
B) When there are two main time-series variables involved in the forecast application 
C) When the data exhibit only random variation 
D) When the data set is extremely uneven

Question 5

A company has recorded 12 months of sales data for the past year and has found the linear trend equation is   = 286 + 64.9t.Based on this information,which of the following is the forecast for period 13?

Accepted Answer

A) 3718 
B) 842.4 
C) 350.8 
D) 1128.4 
A) 3718 
B) 842.4 
C) 350.8 
D) 1128.4

Question 6

In a single exponential smoothing model,finding the forecast value for each period requires having the actual and forecast values from the proceeding period.This is not possible for the first period,so for the first period one should use the actual value as the forecast value.

Accepted Answer

A) True 
 B)False

Question 7

Harrison Hollow,an upscale eatery in Atlanta,tracks its sales on a daily basis.Recently,the manager stated that sales over the past three weeks have been very cyclical.Given the data she has,this statement is not a reasonable one to make.

Accepted Answer

A) True 
 B)False

Question 8

A seasonal index is a statistic that is computed from time-series data to indicate the effect of the seasonality in the time-series data.

Accepted Answer

A) True 
 B)False

Question 9

The Durbin-Watson test for autocorrelation can be reliably applied to any sample sizes.

Accepted Answer

A) True 
 B)False

Question 10

The Baker's Candy Company has been in business for three years.The quarterly sales data for the company are shown as follows:   As a first step in computing a seasonal index,the four-period moving average corresponding to the mid-point between periods 2 and 3 is 3,350.

Accepted Answer

A) True 
 B)False

Question 11

The Baker's Candy Company has been in business for three years.The quarterly sales data for the company are shown as follows:   Based on these data,the seasonal index for quarters 3,7,and 11 is approximately 1.61.

Accepted Answer

A) True 
 B)False

Question 12

To compare one value measured at one point in time with other values measured at different points in time,index numbers must be used.

Accepted Answer

A) True 
 B)False

Question 13

The Wilson Company is interested in forecasting demand for its XG-667 product for quarter 13 based on 12 quarters of data.The following shows the data and the double exponential smoothing model results for periods 1-12 using alpha = 0.20 and beta = 0.40.   Based on this information,what is the MAD value for quarters 2-12?

Accepted Answer

A) About 56.3 
B) Approximately -16.7 
C) Approximately 71.2 
D) About 38.5 
A) About 56.3 
B) Approximately -16.7 
C) Approximately 71.2 
D) About 38.5

If time-series data exhibit a seasonal pattern,which of the following approaches could be used to compute season indexes?

Under which of the following conditions would you suggest that a double exponential smoothing model should be used instead of a single exponential smoothing model?

A company has recorded 12 months of sales data for the past year and has found the linear trend equation is = 286 + 64.9t.Based on this information,which of the following is the forecast for period 13?

In a single exponential smoothing model,finding the forecast value for each period requires having the actual and forecast values from the proceeding period.This is not possible for the first period,so for the first period one should use the actual value as the forecast value.

Harrison Hollow,an upscale eatery in Atlanta,tracks its sales on a daily basis.Recently,the manager stated that sales over the past three weeks have been very cyclical.Given the data she has,this statement is not a reasonable one to make.

A seasonal index is a statistic that is computed from time-series data to indicate the effect of the seasonality in the time-series data.

The Durbin-Watson test for autocorrelation can be reliably applied to any sample sizes.

The Baker's Candy Company has been in business for three years.The quarterly sales data for the company are shown as follows: As a first step in computing a seasonal index,the four-period moving average corresponding to the mid-point between periods 2 and 3 is 3,350.

The Baker's Candy Company has been in business for three years.The quarterly sales data for the company are shown as follows: Based on these data,the seasonal index for quarters 3,7,and 11 is approximately 1.61.

To compare one value measured at one point in time with other values measured at different points in time,index numbers must be used.

The Where, why, and How of Data Collection

Graphs,charts and Tablesdescribing Your Data

Describing Data Using Numerical Measures

Using Probability and Probability Distributions

Discrete Probability Distributions

Introduction to Continuous Probability Distributions

Introduction to Sampling Distributions

Estimating Single Population Parameters

Introduction to Hypothesis Testing

Estimation and Hypothesis Testing for Two Population Parameters

Hypothesis Tests and Estimation for Population Variances

Analysis of Variance

Goodness-Of-Fit Tests and Contingency Analysis

Introduction to Linear Regression and Correlation Analysis

Multiple Regression Analysis and Model Building

Introduction to Nonparametric Statistics

Introduction to Quality and Statistical Process Control

Introduction to Decision Analysis

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Exam 16: Analyzing and Forecasting Time-Series Data

If time-series data exhibit a seasonal pattern,which of the following approaches could be used to compute season indexes?

Under which of the following conditions would you suggest that a double exponential smoothing model should be used instead of a single exponential smoothing model?

A company has recorded 12 months of sales data for the past year and has found the linear trend equation is = 286 + 64.9t.Based on this information,which of the following is the forecast for period 13?

In a single exponential smoothing model,finding the forecast value for each period requires having the actual and forecast values from the proceeding period.This is not possible for the first period,so for the first period one should use the actual value as the forecast value.

Harrison Hollow,an upscale eatery in Atlanta,tracks its sales on a daily basis.Recently,the manager stated that sales over the past three weeks have been very cyclical.Given the data she has,this statement is not a reasonable one to make.

A seasonal index is a statistic that is computed from time-series data to indicate the effect of the seasonality in the time-series data.

The Durbin-Watson test for autocorrelation can be reliably applied to any sample sizes.

The Baker's Candy Company has been in business for three years.The quarterly sales data for the company are shown as follows: As a first step in computing a seasonal index,the four-period moving average corresponding to the mid-point between periods 2 and 3 is 3,350.

The Baker's Candy Company has been in business for three years.The quarterly sales data for the company are shown as follows: Based on these data,the seasonal index for quarters 3,7,and 11 is approximately 1.61.

To compare one value measured at one point in time with other values measured at different points in time,index numbers must be used.

The Where, why, and How of Data Collection

Graphs,charts and Tablesdescribing Your Data

Describing Data Using Numerical Measures

Using Probability and Probability Distributions

Discrete Probability Distributions

Introduction to Continuous Probability Distributions

Introduction to Sampling Distributions

Estimating Single Population Parameters

Introduction to Hypothesis Testing

Estimation and Hypothesis Testing for Two Population Parameters

Hypothesis Tests and Estimation for Population Variances

Analysis of Variance

Goodness-Of-Fit Tests and Contingency Analysis

Introduction to Linear Regression and Correlation Analysis

Multiple Regression Analysis and Model Building

Introduction to Nonparametric Statistics

Introduction to Quality and Statistical Process Control

Introduction to Decision Analysis

Filters