Question

(1)

When analyzing data where a steady increase or decrease over time can be observed, which method of forecasting would best fit and would probably predict a similar increase or decrease?

Select one:

a. Modified Trend Method

b. Weighted Series Method

c. Moving Average Method

d. Normal Curve Method

e. Trend Analysis Method

(2)

If you graphed the data points in a particular time series and a relatively flat, horizontal pattern was observed, the method that should be used to forecast the next point in the series would be

Select one:

a. a horizontal method.

b. an alpha method.

c. a beta method.

d. a trend analysis method.

e. none of the above.

(3)

The Atlanta Braves marketing staff knows it has 20,000 seats in the stadium priced at $20 per ticket, 13,000 priced at $30 per ticket, and 17,000 priced at $50 per ticket. Jim says that the marketing materials should say that average ticket price is $30, Jill says it should be $33, and Fred says it should be $35.20. Who is most correct?

Select one:

a. Jim

b. Jill

c. Fred

d. none of the above

(4)

If you wanted a more accurate way to fit the trend line to the data, a method called least squares could be used. This method finds the largest distance between the data points and the trend line.

Select one:

a. TRUE

b. FALSE

(5)

When you develop a string of simple averages by adding a data sample at a new time period and dropping the oldest data sample you have a

Select one:

a. Moving Average.

b. Simple Average.

c. Weighted Average.

d. Trend Analysis.

(6)

When gathering times series data for a trend analysis, it is important to collect the data at the same time each period because

Select one:

a. it's easier to remember.

b. it reduces variation.

c. it increases accuracy.

d. all of the above.

e. none of the above.

(7)

Allison's time-series data for periods 1 through 7 were used to develop a trend line. She cannot use the trend line to predict a point for period 8.

Select one:

a. TRUE

b. FALSE

Allison's time-series data for periods 1 through 7 were used to develop a trend line. She cannot use the trend line to predict a point for period 8.

Select one:

a. TRUE

b. FALSE

(8)

Weighting factors for a weighted moving average forecast

Select one:

a. weight the most recent data heaviest.

b. weight the oldest data heaviest.

c. weight all the data the same.

d. weight the data in accordance with natural business cycles.

(9)

Which of the following statements is false?

Select one:

a. Simple averaging considers all data samples equally.

b. Using simple averaging when the data samples have a lot of variability will not provide accurate forecasts.

c. Simple averaging is easy to understand and apply.

d. none of the above.

(10)

Using the trend line equation : Y' = a + bx, you are projecting an average disguised as a point.

Select one:

a. TRUE

b. FALSE

Answer 1

1. e

2. e

3. Average price=(20000*20+13000*30+17000*50)/(20000+13000+17000)= 32.8, which is approximately 33.

b. is the correct answer

4. b

5. a