AN 300 FINAL EXAM QUESTIONS AND CORRECT
ANSWERS
Which of the following statements about time-series forecasting is TRUE? Check all that apply.
-It only works with trend data patterns.
-It is a predictive analytics method.
-It is a predictive analytics technique.
-It applies to strategic planning by predicting market growth rate.
-It needs data on observations of an item of interest over time.
-It answers what should happen questions.
-It predicts the future outcome of the item of interest. - ANSWER~-It is a predictive analytics technique.
-It applies to strategic planning by predicting market growth rate.
-It needs data on observations of an item of interest over time.
-It predicts the future outcome of the item of interest.
QUESTIONWhat kind of data pattern is depicted in the following line graph? Check all that apply.
Its a graph with a straight red line angled positively. There is a Blue line that begins below the red line
and then had alternating periods above and below the line.
-Trend
-Random
-Level
-Seasonality
-Cycle - ANSWER~-Trend
-Seasonality
QUESTIONA recurring pattern that occurs at set periods within a larger time frame. -
ANSWER~Seasonality
QUESTIONA gradual increase in values over time. - ANSWER~Upward Trend
,QUESTIONA gradual decrease in values over time. - ANSWER~Downward Trend
QUESTIONA constant average value over time. - ANSWER~Level
QUESTIONWhich of the following is a business application of time series forecasting?
-Sales forecast of swimsuits from advertising expenditure.
-Sales forecast of swimsuits from a survey of vacationers.
-Sales forecasts of swimsuits from past records.
-Sales forecast of swimsuits from demand of sunglasses. - ANSWER~-Sales forecasts of swimsuits from
past records.
QUESTIONMatch the characteristics on the left with the most appropriate forecasting methods to which
it applies on the right.
It requires only one historical data value. - ANSWER~Naive
QUESTIONIt adapts readily to sudden shifts in data pattern. - ANSWER~Naive
QUESTIONIt requires the data points in the time series as well as the number of periods used in
forecasting. - ANSWER~Simple moving average
QUESTIONIt is a weighted average of all prior historical actual vales. - ANSWER~Exponential smoothing
average
QUESTIONIt uses the "best fit" linear trend line to make predictions. - ANSWER~Linear Regression
QUESTIONIt uses indicator variables to capture variations. - ANSWER~Linear regression for seasonality
, QUESTIONWhich of the following statements about time-series forecasting methods is TRUE? Check all
that apply.
-Linear Regression is the method of choice for data with a trend pattern.
-You choose a large value for alpha when using the Exponential Smoothing method to give less weight to
the most recent data.
-Linear Regression for Seasonality without Trend method is appropriate for data with a seasonal pattern
only.
-There is no time-series forecasting method for data with both seasonal and trend patterns.
-You choose a small value for "k" when using the Simple Moving Average method of order "k" to track
movement in the most recent data.
-Linear Regression uses the time period as the dependent variable.
-The Simple Average method is also known as the Historical Moving Average method. - ANSWER~-Linear
Regression is the method of choice for data with a trend pattern.
-Linear Regression for Seasonality without Trend method is appropriate for data with a seasonal pattern
only.
-You choose a small value for "k" when using the Simple Moving Average method of order "k" to track
movement in the most recent data.
-The Simple Average method is also known as the Historical Moving Average method.
QUESTIONGiven the following sales data (in $000) for C&A's product:
January -15
February -18
March -14
April -16
May -13
June -16
1. What is the naive forecast for June?
2. What is the historical moving average forecast for July? (rounded to 2 decimal places)
ANSWERS
Which of the following statements about time-series forecasting is TRUE? Check all that apply.
-It only works with trend data patterns.
-It is a predictive analytics method.
-It is a predictive analytics technique.
-It applies to strategic planning by predicting market growth rate.
-It needs data on observations of an item of interest over time.
-It answers what should happen questions.
-It predicts the future outcome of the item of interest. - ANSWER~-It is a predictive analytics technique.
-It applies to strategic planning by predicting market growth rate.
-It needs data on observations of an item of interest over time.
-It predicts the future outcome of the item of interest.
QUESTIONWhat kind of data pattern is depicted in the following line graph? Check all that apply.
Its a graph with a straight red line angled positively. There is a Blue line that begins below the red line
and then had alternating periods above and below the line.
-Trend
-Random
-Level
-Seasonality
-Cycle - ANSWER~-Trend
-Seasonality
QUESTIONA recurring pattern that occurs at set periods within a larger time frame. -
ANSWER~Seasonality
QUESTIONA gradual increase in values over time. - ANSWER~Upward Trend
,QUESTIONA gradual decrease in values over time. - ANSWER~Downward Trend
QUESTIONA constant average value over time. - ANSWER~Level
QUESTIONWhich of the following is a business application of time series forecasting?
-Sales forecast of swimsuits from advertising expenditure.
-Sales forecast of swimsuits from a survey of vacationers.
-Sales forecasts of swimsuits from past records.
-Sales forecast of swimsuits from demand of sunglasses. - ANSWER~-Sales forecasts of swimsuits from
past records.
QUESTIONMatch the characteristics on the left with the most appropriate forecasting methods to which
it applies on the right.
It requires only one historical data value. - ANSWER~Naive
QUESTIONIt adapts readily to sudden shifts in data pattern. - ANSWER~Naive
QUESTIONIt requires the data points in the time series as well as the number of periods used in
forecasting. - ANSWER~Simple moving average
QUESTIONIt is a weighted average of all prior historical actual vales. - ANSWER~Exponential smoothing
average
QUESTIONIt uses the "best fit" linear trend line to make predictions. - ANSWER~Linear Regression
QUESTIONIt uses indicator variables to capture variations. - ANSWER~Linear regression for seasonality
, QUESTIONWhich of the following statements about time-series forecasting methods is TRUE? Check all
that apply.
-Linear Regression is the method of choice for data with a trend pattern.
-You choose a large value for alpha when using the Exponential Smoothing method to give less weight to
the most recent data.
-Linear Regression for Seasonality without Trend method is appropriate for data with a seasonal pattern
only.
-There is no time-series forecasting method for data with both seasonal and trend patterns.
-You choose a small value for "k" when using the Simple Moving Average method of order "k" to track
movement in the most recent data.
-Linear Regression uses the time period as the dependent variable.
-The Simple Average method is also known as the Historical Moving Average method. - ANSWER~-Linear
Regression is the method of choice for data with a trend pattern.
-Linear Regression for Seasonality without Trend method is appropriate for data with a seasonal pattern
only.
-You choose a small value for "k" when using the Simple Moving Average method of order "k" to track
movement in the most recent data.
-The Simple Average method is also known as the Historical Moving Average method.
QUESTIONGiven the following sales data (in $000) for C&A's product:
January -15
February -18
March -14
April -16
May -13
June -16
1. What is the naive forecast for June?
2. What is the historical moving average forecast for July? (rounded to 2 decimal places)
