Topic 24 - Time series and analysis forecasting- SCM EXAM 3 Practice Questions With Correct Answers 100% Verified.

Time series analysis - correct answer 1- Time series data consist of observations taken regularly over time 2- We assume that some underlying pattern exists in historical data and that the past can be used to forecast the future 3- Time series projections= more effective when environment is STABLE ' 4- Regression models can be very helpful Time will always be your - correct answer INDEPENDENT VARIABLE X Trend: - correct answer the overall pattern of the time series Cycles: - correct answer up and down turns such as business cycles which are usually larger than one year -Recessions and Recoveries Seasonality: - correct answer Rises and falls which occurs on an annual basis ex- lawn mower sales in summer and winter Random Variation: - correct answer even if the first three don't occur we will always have random variation T/F Example Stable environments are critical for effective time series analysis - correct answer True MC Example Which of the following is not a component of time series? a) seasonality b) cycle c) randomness d) trend e) contingency - correct answer e) contingency MC Example The regression model based on annual data for the next 20 years is y^= 20.35 +2.4x. The actual value of y when x = 12 is 52. The value of the forecasting error is a) 68.35 b) 16.35 c) 2.85 d) 49.15 e)40 - correct answer Plug in 12 e= y- y^ c) 2.85 T/F Example Seasonality can be incorporated into regression models with dummy variables - correct answer True