CHAPTER 20 SECTION 1-2: TIME-SERIES ANALYSIS AND FORECASTING Q & A EXAM

CHAPTER 20 SECTION 1-2: TIME-SERIES ANALYSIS AND
FORECASTING Q & A EXAM

CHAPTER 20 SECTION 1-2: TIME-SERIES ANALYSIS AND FORECASTING




MULTIPLE CHOICE


1) A time series is:
a. a set of measurements on a variable collected at the same time or approximately
the same period of time.
b. a set of measurements on a variable taken over some time period in sequential order
c. a model that attempts to analyze the relationship between a dependent variable
and one or more independent variables
d. a model that attempts to forecast the future value of a variable

ANS: B PTS: 1 REF: SECTION 20.1-20.2


2) The time series component that reflects a long-term, relatively smooth pattern or direction
exhibited by a time series over a long time period (more than one year) is called:
a. long-term trend
b. cyclical variation
c. seasonal variation
d. random variation

ANS: A PTS: 1 REF: SECTION 20.1-20.2


3) The time series component that reflects variability over short repetitive time periods and has
duration of less than one year is called:
a. long-term trend
b. cyclical variation
c. seasonal variation
d. random variation


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, CHAPTER 20 SECTION 1-2: TIME-SERIES ANALYSIS AND
FORECASTING Q & A EXAM

ANS: C PTS: 1 REF: SECTION 20.1-20.2


4) The time series component that reflects the irregular changes in a time series that are not
caused by any other component, and tends to hide the existence of the other more predictable
components, is called:
a. long-term trend
b. cyclical variation
c. seasonal variation
d. random variation

ANS: D PTS: 1 REF: SECTION 20.1-20.2


5) Which of the four-time series component is more likely to exhibit the changes in stock
market prices at particular times during the course of one day?
a. Long-term trend
b. Cyclical variation
c. Seasonal variation
d. Random variation

ANS: C PTS: 1 REF: SECTION 20.1-20.2




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, CHAPTER 20 SECTION 1-2: TIME-SERIES ANALYSIS AND
FORECASTING Q & A EXAM

6) The term "seasonal variation" may refer to:
a. the four traditional seasons
b. systematic patterns that occur during the period of one week
c. systematic patterns that occur over the course of one day
d. All of these choices are true

ANS: D PTS: 1 REF: SECTION 20.1-20.2


7) Which of the four time series components is more likely to exhibit the relative steady
growth of the population of Las Vegas from 1964 to 2004?
a. Long-term trend
b. Cyclical variation
c. Seasonal variation
d. Random variation

ANS: A PTS: 1 REF: SECTION 20.1-20.2


8) The time series component that reflects a wavelike pattern describing a long-term trend that is
generally apparent over a number of years is called:
a. long-term trend
b. cyclical variation
c. seasonal variation
d. random variation

ANS: B PTS: 1 REF: SECTION 20.1-20.2


9) We calculate the three-period moving averages for a time series for all time periods except the:
a. first period
b. last period
c. first and last period
d. first and last two periods

ANS: C PTS: 1 REF: SECTION 20.1-20.2

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, CHAPTER 20 SECTION 1-2: TIME-SERIES ANALYSIS AND
FORECASTING Q & A EXAM


10) We calculate the five-period moving average for a time series for all time periods except the:
a. first five periods
b. last five periods
c. first and last period
d. first two and last two periods

ANS: D PTS: 1 REF: SECTION 20.1-20.2




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