QUESTION 1

1. Trend in a time series must always be linear.

   True

   False

QUESTION 2

1. The mean squared error is obtained by computing the average of the squared forecast errors

   True

   False

QUESTION 3

1. In order to use moving averages to forecast a time series, the first step is to select the order k, the number of time series values to be included in the moving average.

   True

   False

QUESTION 4

1. Forecast errors

   	a.	are the difference in successive values of a time series
   	b.	are the differences between actual and forecast values
   	c.	should all be nonnegative
   	d.	should be summed to judge the goodness of a forecasting model.

QUESTION 5

1. The forecasting method that is appropriate when the time series has no significant trend, cyclical, or seasonal pattern is

   	a.	moving average
   	b.	mean squared error
   	c.	mean average error
   	d.	qualitative forecasting

QUESTION 6

1. The trend pattern is easy to identify by using

   	a.	a moving average
   	b.	exponential smoothing
   	c.	regression analysis
   	d.	a weighted moving average

A trend line for the weekly attendance at a restaurant's Sunday brunch is given by the following: Yt=264+0.72t How many guests would you expect in Week 20 ? QUESTION 8 Consider the following time series data: What is the forecast for Month 8 using all the data available as the forecast? Consider the following time series data: Using the naive method(most recent value) as the forecast for next week, compute the Mean Squared Error (MSE). QUESTION 10 Consider the following time series data: Using the naive method(most recent value) as the forecast for next week, compute the Mean Absolute Error (MAE)