ISYE 6501 Models Questions with 100% Verified Correct Answers

ISYE 6501 Models Questions with 100%
Verified Correct Answers
I have a time series and want to forecast future values using past values and past

forecast errors. What model should I consider?

ARIMA

Common uses

Sales forecasting

Demand forecasting

Energy consumption

Look for

Historical time series

Forecasting future values

Not for

Classification

Clustering

Tabular prediction without a time component

I want to forecast a time series and believe recent observations should matter more than

older observations.

Exponential Smoothing

Common uses

Sales forecasts

Inventory planning

Call center demand

Look for

, Time series

Recent data is most important

I want to predict future volatility (uncertainty) rather than future values.

GARCH

Common uses

Stock volatility

Risk management

Financial returns

Look for

Volatility

Risk

Variance changes over time

My outcome is Yes/No and I need probabilities and interpretable coefficients.

Logistic Regression

Common uses

Churn prediction

Loan default

Disease diagnosis

Fraud detection

Look for

Binary outcome

Need interpretability

Need probabilities

My outcome is numeric and I believe the relationship is approximately linear.