EBTM 350 TEST EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
In the linear trend equation
Ft+k=at+btk,
identify the term that signifies the trend.
bt
What is a stream of historical data known as?
time series
What formula is used to calculate the root mean square error over a range of
forecasted values, if the actual value of the time series at time t and the forecast
value for time t are denoted by
At and Ft respectively?
RMSE=∑t=1nAt−Ft2
/n
The indexes in the forecasting indicators provide a complete forecast.
False
How does the Delphi method used for forecasting work?
It uses a panel of experts, whose identities are typically kept confidential from one
another, to respond to a sequence of questionnaires.
In the linear trend equation
Ft+k=at+btk,
what is at known as?
, The level
If the given time series has no trend and no seasonality, which model is the most
appropriate forecasting model to determine the forecast of the time series?
Single moving average model
Time-series models may exhibit seasonal effects or cyclical effects. What about a
seasonal effect makes it different from a cyclical effect?
It is one that repeats at fixed intervals of time, typically a year, month, week, or day.
In forecasting, what is an index?
It is a single measure that weights multiple indicators and provides a measure of overall
expectation.
Before launching a new line of toys, Toys Inc. used the method of historical
analogy to obtain a forecast. What is true of Toys Inc. in this scenario?
It noted the consumer response to similar previous products to marketing campaigns
and used the responses as a basis to predict how the new marketing campaign might
fare.
A cyclical effect is one that repeats at fixed intervals of time, typically a year,
month, week, or day.
False
What function generates a scatter chart in Excel with the values predicted by the
regression model included?
Line fit plots
Regression models of what kind of data focus on predicting the future?
Time series
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
In the linear trend equation
Ft+k=at+btk,
identify the term that signifies the trend.
bt
What is a stream of historical data known as?
time series
What formula is used to calculate the root mean square error over a range of
forecasted values, if the actual value of the time series at time t and the forecast
value for time t are denoted by
At and Ft respectively?
RMSE=∑t=1nAt−Ft2
/n
The indexes in the forecasting indicators provide a complete forecast.
False
How does the Delphi method used for forecasting work?
It uses a panel of experts, whose identities are typically kept confidential from one
another, to respond to a sequence of questionnaires.
In the linear trend equation
Ft+k=at+btk,
what is at known as?
, The level
If the given time series has no trend and no seasonality, which model is the most
appropriate forecasting model to determine the forecast of the time series?
Single moving average model
Time-series models may exhibit seasonal effects or cyclical effects. What about a
seasonal effect makes it different from a cyclical effect?
It is one that repeats at fixed intervals of time, typically a year, month, week, or day.
In forecasting, what is an index?
It is a single measure that weights multiple indicators and provides a measure of overall
expectation.
Before launching a new line of toys, Toys Inc. used the method of historical
analogy to obtain a forecast. What is true of Toys Inc. in this scenario?
It noted the consumer response to similar previous products to marketing campaigns
and used the responses as a basis to predict how the new marketing campaign might
fare.
A cyclical effect is one that repeats at fixed intervals of time, typically a year,
month, week, or day.
False
What function generates a scatter chart in Excel with the values predicted by the
regression model included?
Line fit plots
Regression models of what kind of data focus on predicting the future?
Time series
