Question 1

A linear trend equation is used to represent time series values when the dependent data are changing by equal?

Accepted Answer

A)  Percents 
B)  Proportions 
C)  Amounts 
D)  Rights 
E)  Exponents 
A)  Percents 
B)  Proportions 
C)  Amounts 
D)  Rights 
E)  Exponents C

Question 2

i. The moving average method merely smooths out the fluctuations in the data. ii. The moving average method averages out cyclical (C) and irregular (I) components.
iii. 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).

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. A

Question 3

Which one of the following is not a component of a time series?

Accepted Answer

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

Question 4

i. If the sales, production or other data over a period of time tend to approximate a straight-line trend, the equation developed by the least squares method cannot be used to forecast sales for a future period. ii. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing(or decreasing) by equal amounts, on the average, from one period to another.
iii. If the past data approximates a straight line, the equation used is   = a + bt, where a is they-intercept and b is the slope of the 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)  (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 5

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 6

i. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter. ii. A straight-line trend equation is used to represent the time series when it is believed that the data is increasing(or decreasing) by equal amounts, on the average, from one period to another.
iii. If the past data approximates a straight line, the equation used is   = a + bt, where a is they-intercept and b is the slope of the 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)  (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 7

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 8

How can you describe the moving average method?

Accepted Answer

A)  Useful in smoothing out a time series. 
B)  Used in measuring seasonal fluctuations. 
C)  A technique which does not result in a trend line equation. 
D)  A method for identifying a trend. 
E)  A method for identifying a trend, but does not result in a trend line equation, is useful in smoothing out a time series and measuring seasonal fluctuations. 
A)  Useful in smoothing out a time series. 
B)  Used in measuring seasonal fluctuations. 
C)  A technique which does not result in a trend line equation. 
D)  A method for identifying a trend. 
E)  A method for identifying a trend, but does not result in a trend line equation, is useful in smoothing out a time series and measuring seasonal fluctuations.

Question 9

Since a ski resort does most of its business in the winter, what is the major source of variation in income due to?

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 10

i. Long-term forecasts are usually from one year to more than 10 years into the future. 
ii. A forecast is considered necessary in order to have the raw materials, production facilities, and staff available to meet estimated future demands.
iii. 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.

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

How will data which increases (or decreases)by equal percents appear when plotted on graph paper having an arithmetic scale?

Accepted Answer

A)  Straight line 
B)  Linear 
C)  Curvilinear 
D)  Parabolic 
E)  Discontinuous 
A)  Straight line 
B)  Linear 
C)  Curvilinear 
D)  Parabolic 
E)  Discontinuous

Question 12

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 13

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 
A)  1.449 
B)  28.122 
C)  3.337 
D)  19.325 
E)  28.12

Question 14

In the calculation of 4-quarter seasonal indices the total of the quarterly means will be:

Accepted Answer

A)  4.0. 
B)  1.0. 
C)  100%. 
D)  a variable. 
E)  4.0/total of the quarterly means. 
A)  4.0. 
B)  1.0. 
C)  100%. 
D)  a variable. 
E)  4.0/total of the quarterly means.

Question 15

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 2004?

Accepted Answer

A)  $90,618.6 Million 
B)  $77,690.9 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million 
A)  $90,618.6 Million 
B)  $77,690.9 Million 
C)  $84,154.7 Million 
D)  $103,546.4 Million 
E)  $71,227.0 Million

Question 16

The merchants in Morris, Manitoba suffered flood damage in May 1997. Stores were closed for remodeling nearly two months. What is this type of variation in sales called?

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 17

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 18

i. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend. ii. A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average.
iii. The total of the four typical quarterly indexes should equal 100.0.

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 19

What is Ln of the forecast for year 9?

Accepted Answer

A)  1.449 
B)  28.122 
C)  3.337 
D)  19.325 
E)  1.087 
A)  1.449 
B)  28.122 
C)  3.337 
D)  19.325 
E)  1.087

Question 20

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 2011?

Accepted Answer

A)  $90,618.6 Million 
B)  $97,082.5 Million 
C)  $116,474.2 Million 
D)  $103,546.4 Million 
E)  $110,010.3 Million 
A)  $90,618.6 Million 
B)  $97,082.5 Million 
C)  $116,474.2 Million 
D)  $103,546.4 Million 
E)  $110,010.3 Million

A linear trend equation is used to represent time series values when the dependent data are changing by equal?

Which one of the following is not a component of a time series?

How can you describe the moving average method?

Since a ski resort does most of its business in the winter, what is the major source of variation in income due to?

How will data which increases (or decreases)by equal percents appear when plotted on graph paper having an arithmetic scale?

Economic periods of prosperity followed by recession are described as:

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

In the calculation of 4-quarter seasonal indices the total of the quarterly means will be:

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 2004?

The merchants in Morris, Manitoba suffered flood damage in May 1997. Stores were closed for remodeling nearly two months. What is this type of variation in sales called?

i. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend. ii. A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average. iii. The total of the four typical quarterly indexes should equal 100.0.

What is Ln of the forecast for year 9?

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 2011?

What Is Statistics

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

Describing Data: Numerical Measures

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

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications

Index Numbers

An Introduction to Decision Theory

Filters

Exam 16: Time Series and Forecasting

A linear trend equation is used to represent time series values when the dependent data are changing by equal?

Which one of the following is not a component of a time series?

How can you describe the moving average method?

Since a ski resort does most of its business in the winter, what is the major source of variation in income due to?

How will data which increases (or decreases)by equal percents appear when plotted on graph paper having an arithmetic scale?

Economic periods of prosperity followed by recession are described as:

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

In the calculation of 4-quarter seasonal indices the total of the quarterly means will be:

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 2004?

The merchants in Morris, Manitoba suffered flood damage in May 1997. Stores were closed for remodeling nearly two months. What is this type of variation in sales called?

i. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend. ii. A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average. iii. The total of the four typical quarterly indexes should equal 100.0.

What is Ln of the forecast for year 9?

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 2011?

What Is Statistics

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

Describing Data: Numerical Measures

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

Linear Regression and Correlation

Multiple Regression and Correlation Analysis

Chi-Square Applications

Index Numbers

An Introduction to Decision Theory

Filters