Question 15
4 / 4
points
An independent variable
X
j
is considered highly correlated with the other independent variables if
VIF > 5
VIF < 5
R-squared > 0
R-squared > .5

Question 16
4 / 4
points
True or False: The Variance Inflationary Factor (VIF) measures the correlation of one
X
variables with
the other
X
variables.

Question 17
4 / 4
points
The Variance Inflationary Factor (VIF) measures the

Question 18
4 / 4
points
When a time series appears to be increasing at an increasing rate, such that percentage difference from
observation to observation is constant, the appropriate model to fit is the

Question 19
4 / 4
points
TABLE 16-8 The president of a chain of department stores believes that her stores' total sales have
been showing a linear trend since 1980. She uses Microsoft Excel to obtain the partial output below.
The dependent variable is sales (in millions of dollars), while the independent variable is coded years,
where 1980 is coded as 0, 1981 is coded as 1, etc.
Summary Output
Regression Statistics
Multiple R 0.604
R Square 0.365
Adjusted R Square 0.316
Standard Error 4.800
Observations 17
Coefficients
Intercept 31.2
Coded Year 0.78
Referring to Table 16-8, the fitted trend value (in millions of dollars) for 1985 is __________.
.365
31.2
35.1
35.88

Question 20
4 / 4
points
True or False: Given a data set with 15 yearly observations, there are only thirteen 3-year moving
averages.

Question 21
4 / 4
points
The fairly regular fluctuations that occur within each year would be contained in the
_________________ component.

Question 22
4 / 4
points
TABLE 16-2
The monthly advertising expenditures of a department store chain (in $1,000,000s) were collected
over the last decade. The last 14 months of this time series follows:
Month Expenditures ($)
1 1.4
2 1.8
3 1.6
4 1.5
5 1.8
6 1.7
7 1.9
8 2.2
9 1.9
10 1.9
11 2.1
12 2.4
13 2.8
14 3.1
Referring to Table 16-2, set up a scatter diagram (i.e., time-series plot) with months on the horizontal
X-axis.
True or False: Referring to Table 16-2, advertising expenditures appear to be increasing in a linear
rather than curvilinear manner over time.

Question 23
4 / 4
points
The following table contains the number of complaints received in a department store for the first 6
months of last year.
Month
Complaints
Jan 36
Feb 45
Mar 81
Apr 108
May 144
Referring to the above table, if a three-term moving average is used to smooth this series, what would
be the first calculated term?
36
40.5
54
78

Question 24
4 / 4
points
When using the exponentially weighted moving average for purposes of forecasting rather than
smoothing,

Question 25
4 / 4
points
The overall upward or downward pattern of the data in an annual time series will be contained in the
____________ component.

96 / 100
96 / 100