Econ 414 Exam 2 questions well
answered to pass
An example of a time series data set is one for which the: - correct answer ✔✔data would be
collected for a given firm for several consecutive periods (e.g., months)
Emma uses a linear model to forecast quarterly same-store sales at the local garden center. The
results of her multiple regression is:
Sales = 2,800 + 200*T - 350*D
Where T goes from 1 to 16 for each quarter of the year from the first quarter of 2006 ('06I)
through the fourth quarter of 2009 ('09 IV). D is a dummy variable which is 1 if sales are in the
cold and dreary first quarter, and zero otherwise, because the months of January, February, and
March generate few sales at the Garden Center. Use this model to estimate sales in a store for
the first quarter of 2010 in the 17th month; that is : {2010 I}. Emma's forecast should be: -
correct answer ✔✔5,850
For studying demand relationships for a proposed new product that no one has ever used
before, what would be the best method to use? - correct answer ✔✔consumer surveys, where
potential customers hear about the product and are asked their opinions
In the first-order exponential smoothing model, the new forecast is equal to a weighted average
of the old forecast and the actual value in the most recent period - correct answer ✔✔True
Mr. Geppetto uses exponential smoothing to predict revenue in his wood carving business. He
uses a weight of ω = .4 for the naïve forecast and (1-ω) = .6 for the past forecast. What revenue
did he predict for March using the data below? Select closet answer. - correct answer ✔✔106.2
Select the correct statement
a. Qualitative forecasts give the direction of change.
, b. Quantitative forecasts give the exact amount or exact percentage change.
c. Diffusion forecasts use the proportion of the forecasts that are positive to forecast up or
down.
d. Surveys are a form of qualitative forecasting.
e. all of the above are correct. - correct answer ✔✔e. all of the above are correct
The type of economic indicator that can best be used for business forecasting is the: - correct
answer ✔✔leading indicator
The variation in an economic time-series which is caused by major expansions or contractions
usually of greater than a year in duration is known as: - correct answer ✔✔cyclical variation
Variations in a time-series forecast can be caused by:
a. cyclical variations
b. secular trends
c. seasonal effects
d. a and b only
e. a, b, and c - correct answer ✔✔e. a, b, and c
Brewing Company experienced the following monthly sales (in thousands of barrels) during
2010:
Jan.Feb.Mar.Apr.MayJune10092112108116116
(a)Develop 2-month moving average forecasts for March through July. - correct answer ✔✔116
Brewing Company experienced the following monthly sales (in thousands of barrels) during
2010:
Jan.Feb.Mar.Apr.MayJune10092112108116116
(b)Develop 4-month moving average forecasts for May through July. - correct answer ✔✔113
answered to pass
An example of a time series data set is one for which the: - correct answer ✔✔data would be
collected for a given firm for several consecutive periods (e.g., months)
Emma uses a linear model to forecast quarterly same-store sales at the local garden center. The
results of her multiple regression is:
Sales = 2,800 + 200*T - 350*D
Where T goes from 1 to 16 for each quarter of the year from the first quarter of 2006 ('06I)
through the fourth quarter of 2009 ('09 IV). D is a dummy variable which is 1 if sales are in the
cold and dreary first quarter, and zero otherwise, because the months of January, February, and
March generate few sales at the Garden Center. Use this model to estimate sales in a store for
the first quarter of 2010 in the 17th month; that is : {2010 I}. Emma's forecast should be: -
correct answer ✔✔5,850
For studying demand relationships for a proposed new product that no one has ever used
before, what would be the best method to use? - correct answer ✔✔consumer surveys, where
potential customers hear about the product and are asked their opinions
In the first-order exponential smoothing model, the new forecast is equal to a weighted average
of the old forecast and the actual value in the most recent period - correct answer ✔✔True
Mr. Geppetto uses exponential smoothing to predict revenue in his wood carving business. He
uses a weight of ω = .4 for the naïve forecast and (1-ω) = .6 for the past forecast. What revenue
did he predict for March using the data below? Select closet answer. - correct answer ✔✔106.2
Select the correct statement
a. Qualitative forecasts give the direction of change.
, b. Quantitative forecasts give the exact amount or exact percentage change.
c. Diffusion forecasts use the proportion of the forecasts that are positive to forecast up or
down.
d. Surveys are a form of qualitative forecasting.
e. all of the above are correct. - correct answer ✔✔e. all of the above are correct
The type of economic indicator that can best be used for business forecasting is the: - correct
answer ✔✔leading indicator
The variation in an economic time-series which is caused by major expansions or contractions
usually of greater than a year in duration is known as: - correct answer ✔✔cyclical variation
Variations in a time-series forecast can be caused by:
a. cyclical variations
b. secular trends
c. seasonal effects
d. a and b only
e. a, b, and c - correct answer ✔✔e. a, b, and c
Brewing Company experienced the following monthly sales (in thousands of barrels) during
2010:
Jan.Feb.Mar.Apr.MayJune10092112108116116
(a)Develop 2-month moving average forecasts for March through July. - correct answer ✔✔116
Brewing Company experienced the following monthly sales (in thousands of barrels) during
2010:
Jan.Feb.Mar.Apr.MayJune10092112108116116
(b)Develop 4-month moving average forecasts for May through July. - correct answer ✔✔113
