In a linear trend equation which variable represents

57. In a linear trend equation, which variable represents the average change in the dependent
variable for every unit change in time?
A.
B. b
C.
D.
a
t
Ŷ
AACSB: Communication Abilities
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 16-03 Determine a linear trend equation.
Topic: Trend Analysis
58. For a time series beginning with 1991 and extending up to 2010, which year would be
coded with a one when using the coded method?
AACSB: Communication Abilities
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 16-04 Use a trend equation to compute forecasts.
Topic: Forecasting with Trend Equation
16-49

Chapter 16 - Time Series and Forecasting
59. For an annual time series extending from 2000 through 2010, how many years would be
lost in a three year moving average?
AACSB: Communication Abilities
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 16-02 Compute a moving average.
Topic: Moving Average
60. Given the trend equation, Ŷ = 25 + 0.6 t (base year = 2006), what would be the forecast
value for 2010?
AACSB: Analytic Skills
Bloom's: Application
Difficulty: Medium
Learning Objective: 16-04 Use a trend equation to compute forecasts.
Topic: Forecasting with Trend Equation
61. How can you describe the moving average method?
A. A method that smoothes out a time series.
B. A method to deseasonalize a time series.
C. A technique that results in a trend line equation.
D. A method for computing the slope of a trend line.
AACSB: Communication Abilities
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 16-02 Compute a moving average.
Topic: Moving Average
16-50

Chapter 16 - Time Series and Forecasting
62. For a five-year moving average, how many values will be lost at the beginning and end of
the time series?
A. 0 at the start and 4 at the end
B. 3 at the start and 3 at the end
C. 2 at the start and 2 at the end
D. 0 at the start and 5 at the end
AACSB: Communication Abilities
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 16-02 Compute a moving average.
Topic: Moving Average
63. A linear trend equation is used to represent time series values when the data are changing
by equal?
A. Percents
B. Proportions
C. Amounts
D. Both "A" and "B" are correct
AACSB: Communication Abilities
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 16-03 Determine a linear trend equation.
Topic: Trend Analysis