QMB 3200 FINAL UCF Exam Questions and Answers (Graded A+)

Autocorrelation - ANSWERCorrelation in the errors that arises when the error terms at successive points in time are related. Durbin-Watson test - ANSWERA test to determine whether first-order autocorrelation is present. General linear model - ANSWERA model of the form y=β0+β1z1+β2z2+⋯+βpzp+ε, where each of the independent variables zj(j=1,2,...,p) is a function of x1,x2,...,xk, the variables for which data have been collected. interaction - ANSWERThe effect produced when the levels of one factor interact with the levels of another factor in influencing the response variable. The effect of two independent variables acting together. variable selection procedures - ANSWERMethods for selecting a subset of the independent variables for a regression model. Time series - ANSWERA sequence of observations on a variable measured at successive points in time or over successive periods of time. Mean Squared Error (MSE) - ANSWERThe average of the sum of squared forecast errors. Time series plot - ANSWERA graphical presentation of the relationship between time and the time series variable. Time is shown on the horizontal axis and the time series values are shown on the vertical axis. horizontal pattern - ANSWERA horizontal pattern exists when the data fluctuate around a constant mean. moving average - ANSWERA forecasting method that uses the average of the most recent k data values in the time series as the forecast for the next period. stationary time series - ANSWERA time series whose statistical properties are independent of time. For a stationary time series the process generating the data has a constant mean and the variability of the time series is constant over time.