Quiz 3 Flashcards
Which of the following statements is true with regard to the concept of Markov Chains?
All of these
Delphi Method allows experts, who may be in different places, make forecasts make forecasts based on an individual judgement:
true
Forecasting Error is the sum of the actual and forecasted outcomes:
False
Which of the following is true with regard to the concept of MAD?
it measures the average magnitude of the forecast error
Which of the following is true with regard to the concept of a Multiple Regression model?
all of these
Which of the following is true with regard to the concept of Scatter Plots?
all of these
Weighted Moving Average is a moving average forecasting method that places the same weights on past values:
false
Which of the following is true with regard to the concept of Consumer Market Surveys?
customers are not rational
Forecasting software is just a tool no matter how sophisticated it is. Ultimately, for now, human make decisions:
True
The perfect forecasting model does exist:
False
Which of the following is true with regards to the concept of Least-Square Criterion?
all of these
Which of the following is true with regards to the concept of Correlation Coefficient?
a quantitative measure of the strength of the linear relationship between two variables
it ranges from -1 to +1
it has a symbol of “r”
Time-series forecasting models are based on historical data:
true
Which of the following is true with regards to the concept of a Moving Average?
all of these
Quantitative Models are based on experience and acumen. They are not based on numerical values:
false
Which of the following is true with regard to the concept of Regression Analysis?
all of these
Bias is a technique for determining the accuracy of a forecasting model by measuring the average error and its direction:
true
Which of the following is true with regard to the concept of Causal Models?
they are models that show a cause-effect relationship between variables
Which of the following is true with regard to the concept of the Jury of Executive Opinion?
it can lead to group think
Forecasting period is the number of future periods covered by a forecast. It is sometimes referred to as a forecast lead time:
False
Forecasting horizon is the unit of time for which forecasts are made:
False
Which of the following is true with regard to the concept a Linear Trend?
all of the above
Which of the following is true with regard to the concept of Cyclical Components?
all of these
Which of the following is true with regard to the concept of Random Components?
they are changes in time-series data that are unpredictable and cannot be associated with a trend, seasonal, or cyclical components
The base value is the value to which all other values in the time-series are compared (indexed):
guess
Which of the following is true with regard to the concept of Exponential Smoothing?
all of the above
Which of the following is true with regard to the concept of a Coefficient of Determination?
it is the portion of the total variation in the dependent variable that is explained by its relationship with the independent variable
it is called “R squared”
A residual is the difference between the actual value of the dependent variable and the value predicted by the regression model:
true
Which of the following is true with regard to the concept the Base Period Index? It is:
all of these
Aggregate Price Index is an index that is used to measure the rate change from a base period for a group of two or more items:
true
