EBTM 350 TEST QUESTIONS WITH VERIFIED
ANSWERS
In the linear trend equation
Ft+k=at+btk,
identify the term that signifies the trend. - Answers - bt
What is a stream of historical data known as? - Answers - time series
What formula is used to calculate the root mean square error over a range of forecasted
values, if the actual value of the time series at time t and the forecast value for time t are
denoted by
At and Ft respectively? - Answers - RMSE=∑t=1nAt−Ft2
/n
The indexes in the forecasting indicators provide a complete forecast. - Answers - False
How does the Delphi method used for forecasting work? - Answers - It uses a panel of
experts, whose identities are typically kept confidential from one another, to respond to
a sequence of questionnaires.
In the linear trend equation
Ft+k=at+btk,
what is at known as? - Answers - The level
If the given time series has no trend and no seasonality, which model is the most
appropriate forecasting model to determine the forecast of the time series? - Answers -
Single moving average model
Time-series models may exhibit seasonal effects or cyclical effects. What about a
seasonal effect makes it different from a cyclical effect? - Answers - It is one that
repeats at fixed intervals of time, typically a year, month, week, or day.
In forecasting, what is an index? - Answers - It is a single measure that weights multiple
indicators and provides a measure of overall expectation.
Before launching a new line of toys, Toys Inc. used the method of historical analogy to
obtain a forecast. What is true of Toys Inc. in this scenario? - Answers - It noted the
consumer response to similar previous products to marketing campaigns and used the
responses as a basis to predict how the new marketing campaign might fare.
A cyclical effect is one that repeats at fixed intervals of time, typically a year, month,
week, or day. - Answers - False
, What function generates a scatter chart in Excel with the values predicted by the
regression model included? - Answers - Line fit plots
Regression models of what kind of data focus on predicting the future? - Answers -
Time series
What is a regression model that involves a single independent variable called? -
Answers - Simple Regression
What is true about the observed errors associated with estimating the value of the
dependent variable using the regression line? - Answers - Errors can be negative or
positive
While testing hypotheses for regression coefficients, what is the formula for the t-test for
the slope? - Answers - t= b1−0
--------------
standard error
What is true about using the Excel Regression tool? - Answers - Checking the option
Constant is Zero forces the intercept to zero.
What is an extreme value that is different from the rest of the data? - Answers - Outlier
While checking for linearity by examining the residual plot, what must be true of the
residuals? - Answers - must be randomly scattered
What is true when testing for normality of errors? - Answers - Normality is verified by
inspecting for a bell-shaped distribution.
In multiple regression, what is R Square referred to as? - Answers - coefficient of
multiple determination
What is true about multiple linear regression? - Answers - It uses least squares to
estimate the intercept and slope coefficients.
What is true about the Excel output Multiple R? - Answers - It is another name for the
sample correlation coefficient, r.
What is true of the value of
R2? - Answers - It gives the proportion of variation in the dependent variable that is
explained by the independent variable.
The standard error may be assumed to be large if the data are clustered close to the
regression line. - Answers - False
ANSWERS
In the linear trend equation
Ft+k=at+btk,
identify the term that signifies the trend. - Answers - bt
What is a stream of historical data known as? - Answers - time series
What formula is used to calculate the root mean square error over a range of forecasted
values, if the actual value of the time series at time t and the forecast value for time t are
denoted by
At and Ft respectively? - Answers - RMSE=∑t=1nAt−Ft2
/n
The indexes in the forecasting indicators provide a complete forecast. - Answers - False
How does the Delphi method used for forecasting work? - Answers - It uses a panel of
experts, whose identities are typically kept confidential from one another, to respond to
a sequence of questionnaires.
In the linear trend equation
Ft+k=at+btk,
what is at known as? - Answers - The level
If the given time series has no trend and no seasonality, which model is the most
appropriate forecasting model to determine the forecast of the time series? - Answers -
Single moving average model
Time-series models may exhibit seasonal effects or cyclical effects. What about a
seasonal effect makes it different from a cyclical effect? - Answers - It is one that
repeats at fixed intervals of time, typically a year, month, week, or day.
In forecasting, what is an index? - Answers - It is a single measure that weights multiple
indicators and provides a measure of overall expectation.
Before launching a new line of toys, Toys Inc. used the method of historical analogy to
obtain a forecast. What is true of Toys Inc. in this scenario? - Answers - It noted the
consumer response to similar previous products to marketing campaigns and used the
responses as a basis to predict how the new marketing campaign might fare.
A cyclical effect is one that repeats at fixed intervals of time, typically a year, month,
week, or day. - Answers - False
, What function generates a scatter chart in Excel with the values predicted by the
regression model included? - Answers - Line fit plots
Regression models of what kind of data focus on predicting the future? - Answers -
Time series
What is a regression model that involves a single independent variable called? -
Answers - Simple Regression
What is true about the observed errors associated with estimating the value of the
dependent variable using the regression line? - Answers - Errors can be negative or
positive
While testing hypotheses for regression coefficients, what is the formula for the t-test for
the slope? - Answers - t= b1−0
--------------
standard error
What is true about using the Excel Regression tool? - Answers - Checking the option
Constant is Zero forces the intercept to zero.
What is an extreme value that is different from the rest of the data? - Answers - Outlier
While checking for linearity by examining the residual plot, what must be true of the
residuals? - Answers - must be randomly scattered
What is true when testing for normality of errors? - Answers - Normality is verified by
inspecting for a bell-shaped distribution.
In multiple regression, what is R Square referred to as? - Answers - coefficient of
multiple determination
What is true about multiple linear regression? - Answers - It uses least squares to
estimate the intercept and slope coefficients.
What is true about the Excel output Multiple R? - Answers - It is another name for the
sample correlation coefficient, r.
What is true of the value of
R2? - Answers - It gives the proportion of variation in the dependent variable that is
explained by the independent variable.
The standard error may be assumed to be large if the data are clustered close to the
regression line. - Answers - False
