Question 1

A "fan" shape in a scatterplot indicates:

Accepted Answer

A)  nonconstant error variance 
B)  a nonlinear relationship 
C)  the absence of outliers 
D)  sampling error

Question 2

Exhibit 14-3
The quarterly numbers of applications for home mortgage loans at a branch office of a large bank are recorded in the table below. 
-Refer to Exhibit 14-3.Use a moving average model to forecast these data,requesting 4 quarters of future forecasts.Use a span of 4 quarters.

Accepted Answer

The answer of Exhibit 14-3
The quarterly numbers of applications for...

Question 3

The adjusted R2 adjusts R2 for:

Accepted Answer

A)  non-linearity 
B)  outliers 
C)  low correlation 
D)  the number of explanatory variables in a multiple regression model

Question 4

Exhibit 14-3
The quarterly numbers of applications for home mortgage loans at a branch office of a large bank are recorded in the table below. 
-Refer to Exhibit 14-3.Use simple exponential smoothing to forecast these data,requesting 4 quarters of future forecasts.Use the default smoothing constant of 0.10.Is this better than the moving average model?

Accepted Answer

The answer of Exhibit 14-3
The quarterly numbers of applications for...

Question 5

Exhibit 14-1
An express delivery service company recently conducted a study to investigate the relationship between the cost of shipping a package (Y),the package weight in pounds (XS1U1B11S1U1B0),and the distance shipped in miles (XS1U1B12S1U1B0).Twenty packages were randomly selected from among the large number received for shipment,and a detailed analysis of the shipping cost was conducted for each package.The sample information is shown in the table below: 
-Refer to Exhibit 14-1.Add the second explanatory variable (distance shipped)to the regression model.Estimate and interpret this expanded model.

Accepted Answer

The answer of Exhibit 14-1
An express delivery service company recently...

Question 6

Exhibit 14-1 An express delivery service company recently conducted a study to investigate the relationship between the cost of shipping a package (Y),the package weight in pounds (XS1U1B11S1U1B0),and the distance shipped in miles (XS1U1B12S1U1B0).Twenty packages were randomly selected from among the large number received for shipment,and a detailed analysis of the shipping cost was conducted for each package.The sample information is shown in the table below: -Refer to Exhibit 14-1.Estimate a simple linear regression model involving shipping cost and package weight.Interpret the slope coefficient of the least squares line as well as R².

Accepted Answer

The answer of Exhibit 14-1
An express delivery service company recently...

Question 7

The smoothing constant used in simple exponential smoothing is analogous to the span in moving averages.

Accepted Answer

A) True 
 B)False

Question 8

Winter's method is an exponential smoothing method,which is appropriate for a series with trend but no seasonality.

Accepted Answer

A) True 
 B)False

Question 9

Exhibit 14-2 The station manager of a local television station is interested in predicting the amount of television (in hours)that people will watch in the viewing area.The explanatory variables are: XS1U1B11S1U1B0 age (in years),XS1U1B12S1U1B0 education (highest level obtained,in years)and XS1U1B13S1U1B0 family size (number of family members in household).The multiple regression output is shown below: -Refer to Exhibit 14-2.Identify and interpret the percentage of variation explained (R²)for the model.

Accepted Answer

The answer of Exhibit 14-2
The station manager of a local...

Question 10

Forecasting models can be divided into three groups.They are:

Accepted Answer

A)  time series,optimization,and simulation methods 
B)  judgmental,regression,and extrapolation methods 
C)  judgmental,random,and linear methods 
D)  linear,non-linear,and extrapolation methods

Exam 14: Regression and Forecasting Models

A "fan" shape in a scatterplot indicates:

Exhibit 14-3 The quarterly numbers of applications for home mortgage loans at a branch office of a large bank are recorded in the table below. -Refer to Exhibit 14-3.Use a moving average model to forecast these data,requesting 4 quarters of future forecasts.Use a span of 4 quarters.

The adjusted R² adjusts R² for:

The smoothing constant used in simple exponential smoothing is analogous to the span in moving averages.

Winter's method is an exponential smoothing method,which is appropriate for a series with trend but no seasonality.

Forecasting models can be divided into three groups.They are: