Question 1

A Paasche index more accurately provides a year-to-year comparison of the annual cost of selected products in the market-basket than a Laspeyres index.

Accepted Answer

A) True 
 B)False

Question 2

A ___________ index is a weighted aggregate price index that uses the base period quantities as weights in all succeeding time periods.

Accepted Answer

A) Paasche 
B) First-order autocorrelation 
C) Laspeyres 
D) Cyclical (seasonal)

Question 3

A sustained long-term change in the level of the variable that is being forecasted per unit of time is:

Accepted Answer

A) A trend. 
B) A time series. 
C) Seasonality. 
D) A change due to business cycles.

Question 4

Given the following data,compute the total error (sum of the error terms).

Accepted Answer

The answer of Given the following data,compute the total error...

Question 5

The following data on prices and quantities for the years 1995 and 2000 are given for three products.

Accepted Answer

The answer of The following data on prices and quantities...

Question 6

A positive autocorrelation implies that negative error terms will be followed by negative error terms.

Accepted Answer

A) True 
 B)False

Question 7

A univariate time-series model is used to predict future values of a time series based only upon past values of a time series.

Accepted Answer

A) True 
 B)False

Question 8

When using simple exponential smoothing,the more recent the time series observation,the ____________ its corresponding weight.

Accepted Answer

A) Larger 
B) Smaller 
C) More irregular 
D) More cyclical

Question 9

Consider the following data: $$\begin{array} { c c } \text { Time } & \text { Demand } \ 1 & 17 \ 2 & 21 \ 3 & 19 \ 4 & 23 \ 5 & 18 \ 6 & 16 \ 7 & 20 \ 8 & 18 \ 9 & 22 \ 10 & 20 \ 11 & 15 \ 12 & 22 \end{array}$$ Calculate S₃ using simple exponential smoothing if S₁ = 18.6 and ? = 0.2. S₃ = 19.06

Accepted Answer

The answer of Consider the following data:
\[\begin{array} { c c...

Question 10

Increasing seasonal variation implies that the time series is nonstationary with respect to its variance.

Accepted Answer

A) True 
 B)False

Question 11

Consider the following data: $$\begin{array} { c c } \text { Time } & \text { Demand } \ 1 & 17 \ 2 & 21 \ 3 & 19 \ 4 & 23 \ 5 & 18 \ 6 & 16 \ 7 & 20 \ 8 & 18 \ 9 & 22 \ 10 & 20 \ 11 & 15 \ 12 & 22 \end{array}$$ Using simple exponential smoothing with ? = 0.2,determine the forecast error for time period 1. e₁ = -1.6

Accepted Answer

The answer of Consider the following data:
\[\begin{array} { c c...

Question 12

A sequence of values of some variable or composite of variables taken at successive,uninterrupted time periods,is called a:

Accepted Answer

A) Least squares (linear)trend line. 
B) Moving average. 
C) Cyclical component. 
D) Time series. 
E) Seasonal factor.

Question 13

Cyclical differencing is one of the types of differencing used by the Box-Jenkins methodology.

Accepted Answer

A) True 
 B)False

Question 14

Consider the following data: $$\begin{array} { c c } \text { Time } & \text { Demand } \ 1 & 17 \ 2 & 21 \ 3 & 19 \ 4 & 23 \ 5 & 18 \ 6 & 16 \ 7 & 20 \ 8 & 18 \ 9 & 22 \ 10 & 20 \ 11 & 15 \ 12 & 22 \end{array}$$ Calculate S₅ using simple exponential smoothing if S₃ = 19.064 and ? = 0.2. S₅ = 19.48

Accepted Answer

The answer of Consider the following data:
\[\begin{array} { c c...

Question 15

The linear trend equation for the following data is

Accepted Answer

The answer of The linear trend equation for the following...

Question 16

Two forecasting models were used to predict the future values of a time series.The forecasts are shown below with the actual values:

Accepted Answer

The answer of Two forecasting models were used to predict...

Question 17

The upward or downward movement that characterizes a time series over a period of time is referred to as _____________.

Accepted Answer

A) Seasonal variation 
B) Cyclical variation 
C) A trend 
D) Irregular variation

Question 18

Consider the quarterly production data (in thousands of units)for the XYZ manufacturing company below.

Accepted Answer

The answer of Consider the quarterly production data (in thousands...

Question 19

Given the following data,compute the mean squared deviation (error).

Accepted Answer

The answer of Given the following data,compute the mean squared...

Question 20

The recurring up-and-down movement of a time series around trend levels that last more than one calendar year is called ____________.

Accepted Answer

A) Constant variation 
B) Cyclical variation 
C) Seasonal variation 
D) Irregular variation

Exam 16: Time Series Forecasting and Index Numbers

A Paasche index more accurately provides a year-to-year comparison of the annual cost of selected products in the market-basket than a Laspeyres index.

A ___________ index is a weighted aggregate price index that uses the base period quantities as weights in all succeeding time periods.

A sustained long-term change in the level of the variable that is being forecasted per unit of time is:

Given the following data,compute the total error (sum of the error terms).

The following data on prices and quantities for the years 1995 and 2000 are given for three products.

A positive autocorrelation implies that negative error terms will be followed by negative error terms.

A univariate time-series model is used to predict future values of a time series based only upon past values of a time series.

When using simple exponential smoothing,the more recent the time series observation,the ____________ its corresponding weight.

Consider the following data: $\begin{array} { c c } \text { Time } & \text { Demand } \\1 & 17 \\2 & 21 \\3 & 19 \\4 & 23 \\5 & 18 \\6 & 16 \\7 & 20 \\8 & 18 \\9 & 22 \\10 & 20 \\11 & 15 \\12 & 22\end{array}$ Calculate S₃ using simple exponential smoothing if S₁ = 18.6 and ? = 0.2. S₃ = 19.06

Increasing seasonal variation implies that the time series is nonstationary with respect to its variance.

A sequence of values of some variable or composite of variables taken at successive,uninterrupted time periods,is called a:

Cyclical differencing is one of the types of differencing used by the Box-Jenkins methodology.

The linear trend equation for the following data is

Two forecasting models were used to predict the future values of a time series.The forecasts are shown below with the actual values:

The upward or downward movement that characterizes a time series over a period of time is referred to as _____________.

Consider the quarterly production data (in thousands of units)for the XYZ manufacturing company below.

Given the following data,compute the mean squared deviation (error).

The recurring up-and-down movement of a time series around trend levels that last more than one calendar year is called ____________.