Deck 16: Time Series and Forecasting

Question 1

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

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

Answer 1

A

Question 2

i. A time series is a collection of data recorded over a period of time, usually monthly, quarterly, or yearly.
Ii) Episodic and residual variations can be projected into the future.
Iii) A forecast is considered necessary in order to have the raw materials, production facilities, and staff available to meet estimated future demands.

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

Answer 2

C

Question 3

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

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

Answer 3

E

Question 4

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.

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

How can you describe the moving average method?

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) All of the choices are correct

Question 6

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

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

Question 7

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

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, regression

Question 8

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.

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 9

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) Many business and economic time series have a recurring seasonal pattern.

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 10

A time series is a collection of data that:

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

Question 11

i. A forecast is considered necessary in order to have the raw materials, production facilities, and staff available to meet estimated future demands.
Ii) 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.
Iii) Many business and economic time series have a recurring seasonal pattern.

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 12

For an annual time series extending from 1993 through 2001, how many years would be lost in a five- year moving average?

A) 2 at the start and 1 at the end
B) 1 at the start and 1 at the end
C) 2 at the start and 0 at the end
D) 0 at the start and 2 at the end
E) 2 at the start and 2 at the end

Question 13

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?

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

Question 14

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

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

Question 15

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

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

Question 16

What is variation within a year, such as high sales at Christmas and Easter and low sales in January, called?

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

Question 17

Economic periods of prosperity followed by recession are described as:

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

Question 18

If the exports ($ millions) for the period 1997 through 2001 were $878, $892, $864, $870 and $912 respectively, what are these values called?

A) Moving average
B) Linear trend equation
C) Logarithmic trend equation
D) Time series
E) Secular Trend

Question 19

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

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

Question 20

i. A time series is a collection of data recorded over a period of time, usually monthly, quarterly, or yearly.
Ii) Long-term forecasts are usually from one year to more than 10 years into the future.
Iii) A forecast is considered necessary in order to have the raw materials, production facilities, and staff available to meet estimated future demands.

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 21

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 the y- intercept and b is the slope of the line.

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 22

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

A) 0 at the start and 2 at the end
B) 3 at the start and 0 at the end
C) 1 at the start and 1 at the end
D) 0 at the start and 3 at the end
E) 2 at the start and 0 at the end

Question 23

In the linear trend equation, how is the average change in the dependent variable represented for every unit change in time?

A) a
B) b
C) t
D) ŷ
E) r

Question 24

i. In a time series analysis, the letter "a" in the linear trend equation, is the value of when t = 0.
ii. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter.
Iii) 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.

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 25

What is the forecast for year 9?

A) 20.725
B) 20.025
C) 17.100
D) 28.122
E) 19.325

Question 26

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?

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

Question 27

The following linear trend equation was developed for the annual sales of the Jordan Manufacturing Company. ŷ = 500 + 60t ($000). How much are sales increasing?

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

Question 28

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.

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 29

i. In the linear trend equation, t is any value that corresponds with a time period, i.e., month or quarter.
ii. The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.
Iii) 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.

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 30

Given the trend equation ŷ = 25 + 0.6t (t = 0 in 1996), what would be the forecast value for 2000?

A) 2.4
B) 28.0
C) 3.0
D) 32.0
E) 27.4

Question 31

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.

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 32

What is a disadvantage of estimating a trend line equation by "eye-balling" the best fitting line to a scatter diagram?

A) Provides quick approximations
B) Is subject to human error
C) Provides accurate forecasts
D) Is too difficult to calculate
E) Requires graph paper

Question 33

Given a linear time series trend, $\hat{y}$ = - 5.2 + 3.1t, what is the forecast for 2002 if the t = 0 in 1994?

A) 22.7
B) 33.1
C) 30.0
D) 21.7
E) 19.6

Question 34

The following linear trend equation was developed for annual sales from 1995 to 2001 with 1995 the base or zero year. ŷ = 500 + 60t ($000). What are the estimated sales for 2005 ($000)?

A) $500
B) $560
C) $600
D) $1,040
E) $1,100

Question 35

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.

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 36

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.

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 37

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

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

Question 38

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) The least squares method of computing the equation for a straight line going through the data of interest gives the "best fitting" line.
Iii) 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.

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 39

If you have annual data for 1991 to 2002 and want to code the years for the calculation of the trend, what should you code the year 1991?

A) 0
B) 1
C) 91
D) -6
E) -13

Question 40

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 the y- intercept and b is the slope of the line.

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 41

If a quarterly seasonal index is 0.56, it implies that:

A) the quarter's sales are 56% above the yearly average
B) the quarter's sales are 56% of the year total sales.
C) the other three quarter percentages will total 44%.
D) the quarter's sales are 56% of the yearly average
E) the quarter's sales are 56% below the yearly average

Question 42

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 2005?

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 43

If the data appears to be increasing exponentially and we wish to forecast number of passengers for year 9, we can use Log10 and linear regression equation. What is the linear equation for Log10 of this data?

A)
B)
C)
D)
E)

Question 44

What is Log10 of the forecast for year 9?

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

Question 45

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?

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 46

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

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

Question 47

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

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

Question 48

A logarithmic straight-line trend equation should be used for forecasts when the time series is increasing by?

A) Equal amounts
B) Increasing percents
C) Increasing amounts
D) Increasing or decreasing percents
E) Constant percents

Question 49

Which of the following is true for the exponential equation?

A) Ln a = S Ln ŷ/ n
B) Ln ŷ = Ln a + tLn b
C) Ln b = S(X Ln )/ t2
D) Ln ŷ = Ln a + bLn t
E) ŷ = a + bt

Question 50

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?

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 51

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 2010?

A) $90,618.6 Million
B) $97,082.5 Million
C) $116,464.2 Million
D) $103,546.4 Million
E) $110,010.3 Million

Question 52

What is the general equation for the logarithmic trend equation is log $\hat{y}$ =:

A) Ln a + Ln b (t)
B) Ln a t Ln b (t)
C) a t b(t)
D) ab(t)
E) atb

Question 53

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?

A) $90,618.6 Million
B) $97,082.5 Million
C) $116,464.2 Million
D) $103,546.4 Million
E) $110,010.3 Million

Question 54

What is Ln of the forecast for year 9?

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

Question 55

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?

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 56

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 25% less demand than predicted by the trend line?

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

Question 57

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?

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 58

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?

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 59

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?

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

Question 60

What is the forecast for year 9?

A) 20.725
B) 20.025
C) 17.100
D) 28.122
E) 19.325

Question 61

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).t6 The trend component of a time series is obtained my minimizing the sum of the squares of the errors.

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 62

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.

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 63

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)

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.

Question 64

i. The cyclical component of a time series is described in terms relative to the seasonal index.
ii. The irregular component of a time series is the easiest to measure.
Iii) The ratio-to-moving average method removes the time series trend component, resulting in 12 numbers that are called specific seasonals.

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 65

i. In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend) ii. 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.
Iii) Seasonal variation is quite common in the retail and wholesale industries.

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 66

i. The reason for deseasonalizing a sales series is to remove trend and cyclical fluctuations so that we can study seasonal fluctuations.
Ii) Using the ratio-to-moving-average method, dividing the actual sales for a month by the typical seasonal for that month results in a figure that includes only trend, cycle and irregular fluctuations. This procedure is called deseasonalizing the sales.
Iii) Knowing the seasonal pattern in the form of indexes allows the retailer to deseasonalize sales. This is accomplished by dividing the actual sales for a month by the typical index for that month.

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 incorrect.

Question 67

i. Using the ratio-to-moving-average method, dividing the actual sales for a month by the typical seasonal for that month results in a figure that includes only trend, cycle and irregular fluctuations. This procedure is called deseasonalizing the sales.
Ii) The reason for deseasonalizing a sales series is to remove trend and cyclical fluctuations so that we can study seasonal fluctuations.
Iii) Knowing the seasonal pattern in the form of indexes allows the retailer to deseasonalize sales.

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 incorrect.

Question 68

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.

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 69

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 Using the trend line question and the seasonal indexes, predict demand for the third period of the next year, i.e., period 23.

A) 1439.8
B) 519.8
C) 629.0
D) 1195.2
E) 1742.2

Question 70

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. The ratio-to-moving average method removes the time series trend component, resulting in 12 numbers that are called specific seasonals.
Iii) The total of the four typical quarterly indexes should equal 100.0.

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 incorrect.

Question 71

i. 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.
ii. Seasonal variation is quite common in the retail and wholesale industries.
iii. A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average)

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 72

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) Seasonal variation is quite common in the retail and wholesale industries.t6
Iii) A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average)

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 73

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 1?

A) 553.5
B) 984.0
C) 1291.5
D) 184.5
E) 922.5

Question 74

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.

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 75

Teton Village contains shops, restaurants and motels. They have two peak seasons, - winter for skiing, and summer, for tourists visiting nearby parks. The specific seasonal with respect to the total sales volume for recent years are:
Using the seasonal indexes below, explain the typical index for the spring season.

A) Total sales for the spring season are typically 18.3% below the annual average.
B) Total sales for the spring season are typically 18.3% above the annual average.
C) Total sales for the spring season are typically 81.7% below the annual average.
D) Total sales for the spring season are typically 81.5% below the annual average.

Question 76

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.

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 incorrect

Question 77

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:

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

Question 78

i. 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)
Ii) In the ratio-to-moving-average procedure, using the median or modified mean eliminates trend) 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.

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 79

Teton Village contains shops, restaurants and motels. They have two peak seasons, - winter for skiing, and summer, for tourists visiting nearby parks. The specific seasonal with respect to the total sales volume for recent years are: Using the seasonal indexes below, explain the typical index for the fall season.

A) Total sales for the fall season are typically 25.8% below the annual average.
B) Total sales for the fall season are typically 74.2% below the annual average
C) Total sales for the fall season are typically 74.2% above the annual average.
D) Total sales for the fall season are typically 31.2% below the annual average.

Question 80

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?

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