5 - CHAPTER 20 SECTION 4-5: TIME-SERIES ANALYSIS AND...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 CHAPTER 20 SECTION 4-5: TIME-SERIES ANALYSIS AND FORECASTING MULTIPLE CHOICE 192. The mean absolute deviation averages the absolute differences between the actual values of the time series at time t and the forecast values at time: a. t + 1 b. t c. t - 1 d. t - 2 ANS: B PTS: 1 REF: SECTION 20.4-20.5 193. Which method would you recommend to your statistics professor in selecting the appropriate forecasting model if avoiding large errors is extremely important to him or her? a. Mean absolute deviation (MAD) b. Sum of squares for forecast error (SSE) c. Either a or b d. Neither a nor b ANS: B PTS: 1 REF: SECTION 20.4-20.5 194. The most commonly used measures of forecast accuracy are the: a. mean absolute deviation and the sum of squares for forecast errors b. sum of squares for forecast error and seasonal indexes c. seasonal indexes and the percentage of trend d. all of these choices are correct ANS: A PTS: 1 REF: SECTION 20.4-20.5 195. The mean absolute deviation (MAD) and the sum of squares for forecast error (SSE) are the most commonly used measures of forecast accuracy. The model that forecasts the data best will usually have the: a. lowest MAD and highest SSE b. highest MAD and lowest SSE c. lowest MAD and SSE d. highest MAD and SSE ANS: C PTS: 1 REF: SECTION 20.4-20.5 196. One measure of the accuracy of a forecasting model is the: a. deseasonalized time series b. four-period moving averages c. mean absolute deviation d. smoothing constant ANS: C PTS: 1 REF: SECTION 20.4-20.5
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 197. To assess the adequacy of a forecasting model, one measure that is often used is the a. quadratic trend analysis b. mean absolute deviation c. exponential smoothing d. moving averages ANS: B PTS: 1 REF: SECTION 20.4-20.5 198. The following is the list of mean absolute deviation (MAD) statistics for each of the models you have estimated from time-series data: Model MAD Linear Trend 1.38 Quadratic Trend 1.22 Exponential Trend 1.39 Autoregressive(2) 0.71 Based on the MAD criterion, the most appropriate model is a. linear trend b. quadratic trend c. exponential trend d. autoregressive(2) ANS: D PTS: 1 REF: SECTION 20.4-20.5 TRUE/FALSE 199. The most commonly used measures of forecast accuracy are the mean absolute deviation (MAD) and
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/28/2010 for the course FINOPMGT 250 taught by Professor Kumar during the Spring '10 term at University of Massachusetts Boston.

Page1 / 7

5 - CHAPTER 20 SECTION 4-5: TIME-SERIES ANALYSIS AND...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online