Question 1

When a time series is non-linear, suggest a method for transforming the data so that the least squares method can be applied.

Accepted Answer

When a time series i

Question 2

In the final step, using the ratio-to-moving-average method, the total of the 12 modified means should theoretically be equal to 1,200 because the average of the 12 months is designated as 100.

Accepted Answer

A) True 
 B)False

Question 3

Given the trend equation, Ŷ = 25 + 0.6t (base year = 2006), what would be the forecast value for 2010?

Accepted Answer

A)  25 
B)  28 
C)  30 
D)  32 
A)  25 
B)  28 
C)  30 
D)  32

Question 4

Product sales since 1999 are:   The least squares trend equation is given as:
Ŷ = 265.12 - 21.18t, where t is set equal to 1 for 1999.
What were the predicted sales in 2006?

Accepted Answer

95.68
Explanation: With t = 8

Question 5

Define autocorrelation.

Accepted Answer

Correlation between successive

Question 6

If the time series trend is non-linear, a transformation of the data is required.

Accepted Answer

A) True 
 B)False

Question 7

Data that increases by equal percentages over a period of time appears as a ____________ on an arithmetic scaled graph.

Accepted Answer

The answer of Data that increases by equal percentages over...

Question 8

When estimating the specific seasonals for a monthly time series, the sum of the 12 modified means should theoretically be equal to 1,200 because the average of the 12 specific seasonals is designated as 100.

Accepted Answer

A) True 
 B)False

Question 9

The following linear trend equation was developed for the annual sales of the Jordan Manufacturing Company. Ŷ = 500 + 60t (in $thousands). At what rate are sales increasing?

Accepted Answer

A)  $60,000 per year 
B)  $6,000 per month 
C)  $500,000 per year 
D)  $6,000 per year 
A)  $60,000 per year 
B)  $6,000 per month 
C)  $500,000 per year 
D)  $6,000 per year

Question 10

To compute a forecast for a time series with seasonality, the trended forecast is computed and then adjusted by multiplying by a ________.

Accepted Answer

The answer of To compute a forecast for a time...

Question 11

If a major hurricane exerts an impact on the economy, that event could be classified as a(n) ___________.

Accepted Answer

A)  secular trend 
B)  episodic variation 
C)  residual variation 
D)  seasonal variation 
A)  secular trend 
B)  episodic variation 
C)  residual variation 
D)  seasonal variation

Question 12

The following trend equation is for a manufacturer of women's purses (in millions of purses) based on six years of quarterly data. Ŷ = 2.15 + 1.32t
The following table provides the seasonal factors for each quarter.   The seasonally adjusted forecast for the second quarter of the fifth year is _______.

Accepted Answer

A)  25.91 
B)  15.35 
C)  29.15 
D)  6.8 
A)  25.91 
B)  15.35 
C)  29.15 
D)  6.8

Question 13

The trend forecast equation is Ŷ = 50 + 420t. The next forecast is for period 10. The typical seasonal index for period 10 is 1.25. What are the forecast sales for period 10?

Accepted Answer

A)  4,200 
B)  4,250 
C)  5,313 
D)  1,075 
A)  4,200 
B)  4,250 
C)  5,313 
D)  1,075

Question 14

A logarithmic trend equation should be used when the time series trend is __________________.

Accepted Answer

A)  changing in equal amounts 
B)  increasing by equal percentages 
C)  increasing in equal amounts 
D)  increasing or decreasing by equal percentages 
A)  changing in equal amounts 
B)  increasing by equal percentages 
C)  increasing in equal amounts 
D)  increasing or decreasing by equal percentages

Question 15

The following table 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, sales are ___________.

Accepted Answer

decreasing
Explanation: Calcul

Question 16

The trend forecast equation is Ŷ = 50 + 420t. The next forecast is for period 10. The typical seasonal index for period 10 is 0.82. What are the forecast sales for period 10?

Accepted Answer

A)  4,200 
B)  4,250 
C)  4,000 
D)  3,485 
A)  4,200 
B)  4,250 
C)  4,000 
D)  3,485

Question 17

To calculate monthly typical seasonal indexes, after computing the ratio-to-moving averages, the averages must be:

Accepted Answer

A)  divided by 12. 
B)  multiplied by 12. 
C)  summed and divided by 2. 
D)  summed and divided by 12. 
A)  divided by 12. 
B)  multiplied by 12. 
C)  summed and divided by 2. 
D)  summed and divided by 12.

Question 18

For a five-year moving average, how many values will be lost at the beginning and end of the time series?

Accepted Answer

A)  Zero at the start and four at the end 
B)  Three at the start and three at the end 
C)  Two at the start and two at the end 
D)  Zero at the start and five at the end 
A)  Zero at the start and four at the end 
B)  Three at the start and three at the end 
C)  Two at the start and two at the end 
D)  Zero at the start and five at the end

Question 19

What time series component was exemplified during the 1980s when the American economy enjoyed a period of prosperity?

Accepted Answer

A)  Irregular 
B)  Cyclical 
C)  Trend 
D)  Seasonal 
A)  Irregular 
B)  Cyclical 
C)  Trend 
D)  Seasonal

Question 20

For the third quarter, the sales are 2,000 units; the seasonal index for the quarter is 0.80. What are the deseasonalized sales for the quarter?

Accepted Answer

A)  1,600 
B)  2,000 
C)  2,080 
D)  2,500 
A)  1,600 
B)  2,000 
C)  2,080 
D)  2,500

When a time series is non-linear, suggest a method for transforming the data so that the least squares method can be applied.

In the final step, using the ratio-to-moving-average method, the total of the 12 modified means should theoretically be equal to 1,200 because the average of the 12 months is designated as 100.

Given the trend equation, Ŷ = 25 + 0.6t (base year = 2006), what would be the forecast value for 2010?

Product sales since 1999 are: The least squares trend equation is given as: Ŷ = 265.12 - 21.18t, where t is set equal to 1 for 1999. What were the predicted sales in 2006?

Define autocorrelation.

If the time series trend is non-linear, a transformation of the data is required.

Data that increases by equal percentages over a period of time appears as a ____________ on an arithmetic scaled graph.

When estimating the specific seasonals for a monthly time series, the sum of the 12 modified means should theoretically be equal to 1,200 because the average of the 12 specific seasonals is designated as 100.

The following linear trend equation was developed for the annual sales of the Jordan Manufacturing Company. Ŷ = 500 + 60t (in $thousands). At what rate are sales increasing?

To compute a forecast for a time series with seasonality, the trended forecast is computed and then adjusted by multiplying by a ________.

If a major hurricane exerts an impact on the economy, that event could be classified as a(n) ___________.

The trend forecast equation is Ŷ = 50 + 420t. The next forecast is for period 10. The typical seasonal index for period 10 is 1.25. What are the forecast sales for period 10?

A logarithmic trend equation should be used when the time series trend is __________________.

The following table 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, sales are ___________.

The trend forecast equation is Ŷ = 50 + 420t. The next forecast is for period 10. The typical seasonal index for period 10 is 0.82. What are the forecast sales for period 10?

To calculate monthly typical seasonal indexes, after computing the ratio-to-moving averages, the averages must be:

For a five-year moving average, how many values will be lost at the beginning and end of the time series?

What time series component was exemplified during the 1980s when the American economy enjoyed a period of prosperity?

For the third quarter, the sales are 2,000 units; the seasonal index for the quarter is 0.80. What are the deseasonalized sales for the quarter?

What Is Statistics

Describing Data: Frequency Tables, Frequency Distributions, and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Data

A Survey of Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Correlation and Linear Regression

Multiple Regression Analysis

Nonparametric Methods: Nominal Level Hypothesis Tests

Nonparametric Methods: Analysis of Ordinal Data

Index Numbers

Statistical Process Control and Quality Management

An Introduction to Decision Theory

Filters

Exam 18: Time Series and Forecasting

When a time series is non-linear, suggest a method for transforming the data so that the least squares method can be applied.

In the final step, using the ratio-to-moving-average method, the total of the 12 modified means should theoretically be equal to 1,200 because the average of the 12 months is designated as 100.

Given the trend equation, Ŷ = 25 + 0.6t (base year = 2006), what would be the forecast value for 2010?

Product sales since 1999 are: The least squares trend equation is given as: Ŷ = 265.12 - 21.18t, where t is set equal to 1 for 1999. What were the predicted sales in 2006?

Define autocorrelation.

If the time series trend is non-linear, a transformation of the data is required.

Data that increases by equal percentages over a period of time appears as a ____________ on an arithmetic scaled graph.

When estimating the specific seasonals for a monthly time series, the sum of the 12 modified means should theoretically be equal to 1,200 because the average of the 12 specific seasonals is designated as 100.

The following linear trend equation was developed for the annual sales of the Jordan Manufacturing Company. Ŷ = 500 + 60t (in $thousands). At what rate are sales increasing?

To compute a forecast for a time series with seasonality, the trended forecast is computed and then adjusted by multiplying by a ________.

If a major hurricane exerts an impact on the economy, that event could be classified as a(n) ___________.

The trend forecast equation is Ŷ = 50 + 420t. The next forecast is for period 10. The typical seasonal index for period 10 is 1.25. What are the forecast sales for period 10?

A logarithmic trend equation should be used when the time series trend is __________________.

The following table 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, sales are ___________.

The trend forecast equation is Ŷ = 50 + 420t. The next forecast is for period 10. The typical seasonal index for period 10 is 0.82. What are the forecast sales for period 10?

To calculate monthly typical seasonal indexes, after computing the ratio-to-moving averages, the averages must be:

For a five-year moving average, how many values will be lost at the beginning and end of the time series?

What time series component was exemplified during the 1980s when the American economy enjoyed a period of prosperity?

For the third quarter, the sales are 2,000 units; the seasonal index for the quarter is 0.80. What are the deseasonalized sales for the quarter?

What Is Statistics

Describing Data: Frequency Tables, Frequency Distributions, and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Data

A Survey of Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Correlation and Linear Regression

Multiple Regression Analysis

Nonparametric Methods: Nominal Level Hypothesis Tests

Nonparametric Methods: Analysis of Ordinal Data

Index Numbers

Statistical Process Control and Quality Management

An Introduction to Decision Theory

Filters