1.

The decomposition model would most likely be appropriate in a situation where

Select one:

a.

The time series was horizontal

b.

The time series had mainly a cycle component with a small random component

c.

The time series had both trend and seasonal components

d.

The time series had trend only

e.

The time series had mainly trend and cycle components with a small random component

2.

Which of the following is assumed about errors from a correctly specified model of the time series generating process?

Select one:

a.

Errors are symmetric around the mean error

b.

Errors will be uncorrelated over time

c.

The mean error will be exactly zero

d.

All of the above are correct

e.

Only (a) and (c) above are correct

3.

Nave forecasting methods are

Select one:

a.

Used to develop simple models that assume very recent data provide the best predictor of the future

b.

Are used when there is no data available

c.

Are always used if the person forecasting has little knowledge of forecast techniques

d.

None of the above

e.

(a) and (b) above only