1|Page
Business Math & Statistics - Ivy
Software| Certified Q&A 2026
Trend Analysis - correct-answer-uses past actual values to forecast; however, it is
used when there is a noticeable trend over time
True/False: When forecasting data that are arranged in time periods, i.e., a time
series analysis, there are two different approaches: trend analysis and averaging. -
correct-answer-True
When you develop a string of simple averages by adding a data sample at a new
time period and drop the oldest data sample, you have a:
A) Moving Average
B) Simple Average
C) Weighted Average
D) Trend Analysis - correct-answer-A) Moving Average
,2|Page
If you graphed the data points in a particular time series and a relatively flat,
horizontal pattern was observed, the method that should be used to forecast the
next point in the series would be:
A) a horizontal method
B) an averaging method
C) a beta method
D) a trend analysis method
E) none of the above - correct-answer-B) an averaging method
True/False: If the data points in a trend line are plotted on a graph, a trend line
can be fitted to the data using the least squares method. - correct-answer-True.
The least squares method attempts to find the line which minimizes the sum of
the squared deviations (distances) of the data points to the trend line.
in the formula y = a + bx, what is b? - correct-answer-B is the slope
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in the formula y = a + bx, what is a? - correct-answer-a is the y-intercept
How do you calculate y in y = a + bx? - correct-answer-y is the sum of y divided by
n
How do you calculate x in y = a + bx? - correct-answer-x is the sum of x divided by
n
Which of the following statements is false?
A) Simple averaging considers all data samples equally
B) Using simple averaging when data samples have a lot of variability will provide
accurate forecasts
, 4|Page
C) Simple averaging is easy to understand and apply - correct-answer-B) Using
simple averaging when data samples have a lot of variability will provide accurate
forecasts
True/False: Allison's time-series data for periods 1 through 7 were used to
develop a trend line. She cannot use the trend line to predict a point for period 8 -
correct-answer-False
When you develop a string of simple averages by adding a data sample at a new
time period and dropping the oldest data sample you have a:
a. Moving Average.
b. Simple Average.
c. Weighted Average.
d. Trend Analysis. - correct-answer-a. Moving Average.
Business Math & Statistics - Ivy
Software| Certified Q&A 2026
Trend Analysis - correct-answer-uses past actual values to forecast; however, it is
used when there is a noticeable trend over time
True/False: When forecasting data that are arranged in time periods, i.e., a time
series analysis, there are two different approaches: trend analysis and averaging. -
correct-answer-True
When you develop a string of simple averages by adding a data sample at a new
time period and drop the oldest data sample, you have a:
A) Moving Average
B) Simple Average
C) Weighted Average
D) Trend Analysis - correct-answer-A) Moving Average
,2|Page
If you graphed the data points in a particular time series and a relatively flat,
horizontal pattern was observed, the method that should be used to forecast the
next point in the series would be:
A) a horizontal method
B) an averaging method
C) a beta method
D) a trend analysis method
E) none of the above - correct-answer-B) an averaging method
True/False: If the data points in a trend line are plotted on a graph, a trend line
can be fitted to the data using the least squares method. - correct-answer-True.
The least squares method attempts to find the line which minimizes the sum of
the squared deviations (distances) of the data points to the trend line.
in the formula y = a + bx, what is b? - correct-answer-B is the slope
,3|Page
in the formula y = a + bx, what is a? - correct-answer-a is the y-intercept
How do you calculate y in y = a + bx? - correct-answer-y is the sum of y divided by
n
How do you calculate x in y = a + bx? - correct-answer-x is the sum of x divided by
n
Which of the following statements is false?
A) Simple averaging considers all data samples equally
B) Using simple averaging when data samples have a lot of variability will provide
accurate forecasts
, 4|Page
C) Simple averaging is easy to understand and apply - correct-answer-B) Using
simple averaging when data samples have a lot of variability will provide accurate
forecasts
True/False: Allison's time-series data for periods 1 through 7 were used to
develop a trend line. She cannot use the trend line to predict a point for period 8 -
correct-answer-False
When you develop a string of simple averages by adding a data sample at a new
time period and dropping the oldest data sample you have a:
a. Moving Average.
b. Simple Average.
c. Weighted Average.
d. Trend Analysis. - correct-answer-a. Moving Average.
