ECN 801 FINAL EXAM SCRIPT COMPLETE
ANSWERS GRADED A+
◉ Time series forecasts for seasonality.
Answer: A multiple regression model with indicator variables as
the independent variable
◉ Time series forecasts for trend.
Answer: A simple regression model with time period as the
independent variable
◉ Time series forecasts for seasonality with trend.
Answer: A multiple regression model with indicator variables and
time period as the independent variables
◉ Which of the following statements about linear regression is
TRUE?
Answer: It is a predictive analytics technique.
The relationship between the outcome and input variables is
linear.
It has only one dependent variable.
Multiple regression has two or more independent variables.
◉ Modeling
, Answer: Use an equation to describe the relationship between
dependent and independent variable(s).
◉ Estimating
Answer: Use the ordinary least squares method to produce an
equation that is closest to the data.
◉ Evaluating
Answer: Examine several goodness of fit measures to select the
best equation.
◉ Modeling
Answer: Use a dummy variable to describe a categorical
independent variable.
◉ You want to capture the seasonal variations of spring, summer,
fall, and winter on sales of swimsuits using a regression model.
Which of the following statements is TRUE?
Answer: A multiple regression model should be used.
Three dummy variables should be used in the model.
◉ Which of the following is true about the estimating regression
process?
Answer: It minimizes the sum of the squared differences between
the observed and predicted values of the dependent variable.
ANSWERS GRADED A+
◉ Time series forecasts for seasonality.
Answer: A multiple regression model with indicator variables as
the independent variable
◉ Time series forecasts for trend.
Answer: A simple regression model with time period as the
independent variable
◉ Time series forecasts for seasonality with trend.
Answer: A multiple regression model with indicator variables and
time period as the independent variables
◉ Which of the following statements about linear regression is
TRUE?
Answer: It is a predictive analytics technique.
The relationship between the outcome and input variables is
linear.
It has only one dependent variable.
Multiple regression has two or more independent variables.
◉ Modeling
, Answer: Use an equation to describe the relationship between
dependent and independent variable(s).
◉ Estimating
Answer: Use the ordinary least squares method to produce an
equation that is closest to the data.
◉ Evaluating
Answer: Examine several goodness of fit measures to select the
best equation.
◉ Modeling
Answer: Use a dummy variable to describe a categorical
independent variable.
◉ You want to capture the seasonal variations of spring, summer,
fall, and winter on sales of swimsuits using a regression model.
Which of the following statements is TRUE?
Answer: A multiple regression model should be used.
Three dummy variables should be used in the model.
◉ Which of the following is true about the estimating regression
process?
Answer: It minimizes the sum of the squared differences between
the observed and predicted values of the dependent variable.
