1. The Mean Squared Error is often used over other error criteria because

Select one:

a.

it shows the direction of forecast errors

2.

In a decomposition model, for monthly data, the seasonal relatives are formed by relating which two series?

Select one:

a.

The 12 period moving average and the centred moving average

b.

The centred moving average and the trend line values

c.

The centred moving average and the original time series

d.

The original moving average and the trend line values

e.

The 12 period moving average and the original time series

3.

Which of the following statements about budgets and forecasts is correct?

Select one:

a.

Budgets are predicted accounting of projected firm actions

b.

Budgets can sometimes determine forecasts but forecasts will not determine budgets

c.

Budgets provide benchmarks of key performance indicators

d.

All of the above are correct

e.

Only (a) and (c) are correct

b.

it is relatively more sensitive to large forecast errors

c.

it is normally distributed

d.

it has zero autocorrelation coefficients

e.

none of the above are true