1. Is linear regression analysis a good model for this data?  Choose True for yes, or False for no.

A) True
B) False

2. 72 months of consumer complaints for a major retailer are in the “Consumer Complaint Download Consumer Complaint” file.  Use 3-months moving average, 4-months moving average, weighted moving average assigning 0.5, 0.3, and 0.2 to the previous 3 months, and simple exponential smoothing method.  Make the initiating value of the exponential smoothing method equal to the observation of that month, use the formula, and find the best alpha value by testing increments of 0.1.  Use MAD as cumulative error measure for all methods.  Which of the following is the best model of forecasting for this retailer?

A) Exponential smoothing
B) 3-months moving average
C) 4-months moving average
D) 3-months weighted moving average

3. What is the best alpha value you found for the simple exponential smoothing method?

A) 0.2 or more but less than 0.4
B) More than 0.8
C) 0.6 or more but less than 0.8
D) 0.4 or more but less than 0.6
E) Less than 0.2