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If the span of a moving average is large - say, 12 months- then few observations

ID: 3150008 • Letter: I

Question

If the span of a moving average is large - say, 12 months- then few observations go into each average, and extreme values have relatively large effect on the forecast True False To deseasonalize an observation (assuming a multiplicative. model of(seasonality),multiply it by the appropriate seasonal index True False In a multiplicative seasonal model we multiply a 'base' forecast by an appropriate seasonal index These indexes one for each season, typically average to 1 True False An automobile rental company wants to predict the yearly maintenance expense (Y) for an automobile using the number of miles driven during the year (X _1) and the age of the on 10 automobiles and run a regression analysis with the results shown below.

Explanation / Answer

Q37. Ans: True.

Ref: Data Analysis and Decision Making with Microsoft Excel, RevisedData Analysis and Decision Making with Microsoft Excel, Revised, page No.764

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