Question 1 Important terminology includes stationarity and components. How many statements are correct? 0 1 2 3 (A) Stationarity is described as the cause of variability within a time series, whereas components are described as the overall nature of a time series. (B) A random component can be described as unexplained variability and a trend component can be explained as variability explained by the non-stationary nature of the time series. (C) A seasonal component can be described as any repeating patter and a cyclical component can be described as a pattern that repeats every year. Question 2 Qualitative forecasting methods are introduced. How many statements are correct? 0 1 2 3 (A) Two qualitative methods considered are Delphi method and Jury of executive opinion. (B) Two qualitative methods considered are Consumer market survey and Sales force composite. (C) Two qualitative methods not considered are exponential smoothing and regression because they are quantitative methods. Question 3 Quantitative forecasting methods are introduced. How many statements are correct? 0 1 2 3 (A) The naive approach is a moving average with a window of zero. (B) Exponential smoothing is a weighted moving average that uses a smoothing constant. (C) Regression is a trend projection method that uses a least-squares approach to estimate intercept and slope estimates to forecast a mean of a dependent variable using the independent variable of time