QMB 3200 Final Exam Questions With
Complete Correct Answers.
Which of the following is not present in a time series? - Answer Operational variations
The difference between the actual time series value and the forecast is called: - Answer
forecast error
What type of analysis aims to discover a pattern in the historical data or time series and then
extrapolate the pattern into the future? - Answer Time series analysis
The average of the absolute values of the forecast errors is called: - Answer mean absolute
error
What is the component of a time series model that is attributable to multiyear cycles in the time
series? - Answer The cyclical component
Time series regression refers to the use of regression analysis when the independent variable is:
- Answer time
The method that uses the average of the most recent k data values in the time series as the
forecast for the next period is called: - Answer moving averages
If the historical data are restricted to past values of the variable to be forecast, the forecasting
procedure is called a: - Answer time series method
What forecasting method uses a weighted average of past time series values as the forecast; it is
a special case of the weighted moving averages method in which we select only one weight—
the weight for the most recent observation? - Answer Exponential smoothing
Seasonal and irregular components with values greater than 1.00 indicate effects _____ the
trend estimate and values below 1.00 indicate effects _____ the trend estimate. Which two
words correctly complete this sentence? - Answer above; below
, A positive forecast error indicates that the forecasting method _____ the dependent variable. -
Answer underestimated
To model a time series with a seasonal pattern, we treat the season as a(n): - Answer
categorical variable
Which of the following exponential smoothing constant values puts the same weight on the
most recent time series value as does a 5-period moving average? - Answer alpha = .2
What forecasting method involves selecting a different weight for the most recent k data values
in the time series and then computing a weighted average of the values? - Answer Weighted
moving average method
The following linear trend expression was estimated using a time series with 9 years as the
independent variable and annual profit as the response variable (in millions).
Tt = 29.2 + 3.8tThe value 3.8 represents the: - Answer amount that the profit is expected to
increase by each year, in millions of dollars, on average
When using a weighted moving average, if we believe that the recent past is a better predictor
of the future than the distant past, we should: - Answer give larger weights to recent
observations
What kind of forecasting method is based on the assumption that the variable we are
forecasting has a cause-effect relationship with one or more other variables? - Answer Casual
forecasting method
A time series method that is used to separate or decompose a time series into seasonal, trend,
and irregular components is called: - Answer time series decomposition
Three of the following forecasting methods are appropriate for a time series with a horizontal
pattern. Which one is not appropriate for a time series with a horizontal pattern? - Answer
Linear trend regression
The time series model that is appropriate in situations where the seasonal fluctuations do not
depend upon the level of the time series is: - Answer an additive model
Complete Correct Answers.
Which of the following is not present in a time series? - Answer Operational variations
The difference between the actual time series value and the forecast is called: - Answer
forecast error
What type of analysis aims to discover a pattern in the historical data or time series and then
extrapolate the pattern into the future? - Answer Time series analysis
The average of the absolute values of the forecast errors is called: - Answer mean absolute
error
What is the component of a time series model that is attributable to multiyear cycles in the time
series? - Answer The cyclical component
Time series regression refers to the use of regression analysis when the independent variable is:
- Answer time
The method that uses the average of the most recent k data values in the time series as the
forecast for the next period is called: - Answer moving averages
If the historical data are restricted to past values of the variable to be forecast, the forecasting
procedure is called a: - Answer time series method
What forecasting method uses a weighted average of past time series values as the forecast; it is
a special case of the weighted moving averages method in which we select only one weight—
the weight for the most recent observation? - Answer Exponential smoothing
Seasonal and irregular components with values greater than 1.00 indicate effects _____ the
trend estimate and values below 1.00 indicate effects _____ the trend estimate. Which two
words correctly complete this sentence? - Answer above; below
, A positive forecast error indicates that the forecasting method _____ the dependent variable. -
Answer underestimated
To model a time series with a seasonal pattern, we treat the season as a(n): - Answer
categorical variable
Which of the following exponential smoothing constant values puts the same weight on the
most recent time series value as does a 5-period moving average? - Answer alpha = .2
What forecasting method involves selecting a different weight for the most recent k data values
in the time series and then computing a weighted average of the values? - Answer Weighted
moving average method
The following linear trend expression was estimated using a time series with 9 years as the
independent variable and annual profit as the response variable (in millions).
Tt = 29.2 + 3.8tThe value 3.8 represents the: - Answer amount that the profit is expected to
increase by each year, in millions of dollars, on average
When using a weighted moving average, if we believe that the recent past is a better predictor
of the future than the distant past, we should: - Answer give larger weights to recent
observations
What kind of forecasting method is based on the assumption that the variable we are
forecasting has a cause-effect relationship with one or more other variables? - Answer Casual
forecasting method
A time series method that is used to separate or decompose a time series into seasonal, trend,
and irregular components is called: - Answer time series decomposition
Three of the following forecasting methods are appropriate for a time series with a horizontal
pattern. Which one is not appropriate for a time series with a horizontal pattern? - Answer
Linear trend regression
The time series model that is appropriate in situations where the seasonal fluctuations do not
depend upon the level of the time series is: - Answer an additive model
