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Unformatted text preview: eed ____ dummy variables.
A. 5
B. 52
C. 4
D. 3
E. 365 AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 2
Topic: Time series regression 51.
Based on the information given in the table above, we can conclude that in general the
forecasting method is:
A. Underestimating demand
B. Overestimating demand
C. We cannot determine whether the predictions based on this method's results in
underestimation or overestimation of demand. AACSB: Reflective Thinking
Bloom's: Analysis
Difficulty: Medium
Learning Objective: 1
Topic: Forecasting 11595 Chapter 01  An Introduction to Business Statistics 52.
Based on the information given in the table above, what is the MAD?
A. 1.3333
B. 1.6667
C. 2.5
D. 3.3333
E. 4.5 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 6
Topic: Exponential Smoothing 53.
Based on the information given in the table above, what is the average forecast error?
A. 1.3333
B. 1.6667
C. 2.5
D. 3.3333
E. 4.5 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 1
Topic: Forecasting 11596 Chapter 01  An Introduction to Business Statistics 54.
Based on the information given in the table above, what is the MSD?
A. 1.3333
B. 1.6667
C. 2.5
D. 3.3333
E. 4.5 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 6
Topic: Exponential Smoothing 55. When using simple exponential smoothing, the value of the smoothing constant α cannot
be:
A. Negative
B. Greater than zero
C. Greater than 1
D. .99
E. Both A and C AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 6
Topic: Exponential Smoothing 11597 Chapter 01  An Introduction to Business Statistics 56. The demand for a product for the last six years has been 15, 15, 17, 18, 20, and 19. The
manager wants to predict the demand for this time series using the following simple linear
trend equation: trt = 12 + 2t. What are the forecast errors for the 5th and 6th years?
A. 0, 3
B. 0, + 3
C. + 2, + 5
D. 2, 5
E. 1, 4 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 2
Topic: Time series regression 57.
Use this equation to forecast the demand for this product and calculate the MSD.
A. MSD = 6
B. MSD = 3.3333
C. MSD = 7.0
D. MSD = 2
E. MSD = 2.4 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 6
Topic: Exponential Smoothing 11598 Chapter 01  An Introduction to Business Statistics 58.
Use this equation to forecast the demand for this product and calculate the MAD.
A. MAD = 1.333
B. MAD = 1.6
C. MAD = 2.0
D. MAD = 2.333
E. MAD = 2.5 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 6
Topic: Exponential Smoothing 59. When there is _______________ seasonal variation, the magnitude of the seasonal swing
does not depend on the level of the time series.
A. cyclical
B. constant
C. irregular
D. increasing AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 1
Topic: Seasonal variation 11599 Chapter 01  An Introduction to Business Statistics 60. When there is firstorder autocorrelation, the error term in period t is related to the error
term in period _____.
A. t
B. t + 1
C. t  1
D. t  2 AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 2
Topic: Time series regression 61. The _____ test is a test for firstorder positive autocorrelation.
A. DurbinWatson
B. MSD
C. MAD
D. Multiplicative Winters AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 2
Topic: Time series regression 62. Holt  Winters double exponential smoothing method is used to forecast time series data
with ________.
A. autocorrelation
B. linear trend
C. cyclical patterns
D. moving averages AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 6
Topic: Exponential Smoothing 11600 Chapter 01  An Introduction to Business Statistics 63. The recurring upanddown movement of a time series around trend levels that last more
than one calendar year is called ____.
A. constant variation
B. cyclical variation
C. seasonal variation
D. irregular variation AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 1
Topic: Time series analysis 64. A forecasting method that weights recent observations more heavily is called ____.
A. time series analysis
B. firstorder autocorrelation
C. multiplicative decomposition
D. exponential smoothing AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 4
Topic: Exponential Smoothing 65. The upward or downward movement that characterizes a time series over a period of time
is referred to as ____.
A. seasonal
B. cyclical
C. trend
D. irregular AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
Topic: Time series analysis 11601 Chapter 01  An Introduction to Business Statistics 66. The purpose behind moving averages and centered moving averages is to eliminate
_________________.
A. constant variation
B. cyclic...
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This document was uploaded on 01/20/2014.
 Winter '14

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