25). Which of the following is an example of a time series? a). The number of da

Question

25). Which of the following is an example of a time series?

            a). The number of daily visitors to the Niagara Falls during the month of April.

            b). The recorded exam scores of students in a class.

            c). The sales prices of single family homes sold last month in Florida.

            d). The current average prices of regular gasoline in different states of the U.S.

26). Under which of the following conditions is qualitative forecasting considered attractive?

            a). When the forecasts have to be documented.

            b). When the forecasts have to be independent of the forecaster's judgment.

            c). When past data are either misleading or obsolete.

            d). When the forecasts can be based on reliable data.

27). A time series with observed long-term upward movements in its values is said to have

            a). a cyclical component.

            b). an increasing trend component.

            c). a seasonally increasing component.

            d). a decreasing tend component.

28). In a moving average method, when a new observation becomes available, the new average is computed by including the new observation and

            a). dropping the oldest observation.

            b). keeping the previous m observations.

            c). dropping the youngest previous observation.

            d). keeping the previous m-1 observations.

Explanation / Answer

Answer 25)

A time series is a series of values obtained at successive time interval. Hence in the above example, let us analyse each of the answer choices:

Thus the answer to question # 25 is answer choice (a)

.

Answer to question 26)

Qaulitative forecasting is considered attractive when there is no quantitative data to support the prediction. When there is no data of past, or the data is incorrect and not valid for the present trend, it is preferred to forecast on judgemental basis. Hence the correct answer choice is (c )

.

Answer to question 27)

A time series with long term movements is called a trend.

If it is a long term upward movement it is termed as "an increasing trend component"

If it is a long term downward movement it is termed as "an decreasing trend component"

A cyclical component depicts regular fluctuations

Seasonally increasing component is a component that depends on the time of the year and hence is not a long term movement

Thus the correct answer to question # 27 is (b) "an increasing trend component"

.

Answer to question 28)

Moving average is basically a method of calculating averages in a manner that the new observations get included in the calculation of mean by dropping the oldest observation in the series.

hence the correct answer to question # 28) is answer choice (a)

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.