AN300 Exam 3 Practice Questions with Correct Answers 100% Verified Which of the following statements about time-series forecasting is TRUE? Check all that apply. - Correct Answer It applies to strategic planning by predicting market growth rates.It is a predictive analytics technique.It needs data on observations of an item of interest over time.It predicts the future outcome of the item of interest.What kind of data pattern is depicted in the following line graph? Check all that apply. - Correct Answer Seasonality, Trend A recurring pattern that occurs at set periods within a larger time frame. - Correct Answer Seasonality A gradual increase in values over time. - Correct Answer Upward trend A gradual decrease in values over time. - Correct Answer Downward trend A constant average value over time. - Correct Answer Level Which of the following is a business application of time series forecasting? - Correct Answer Sales forecasts of swimsuits from past records.It requires only one historical data value. - Correct Answer Naive It adapts readily to sudden shifts in data pattern. - Correct Answer Naive It requires the data points in the time series as well as the number of periods used in forecasting. - Correct Answer Simple moving average It is a weighted average of all prior historical actual vales. - Correct Answer Exponential smoothing average 1 / 2
It uses the ""best fit"" linear trend line to make predictions. - Correct Answer Linear regression It uses indicator variables to capture variations. - Correct Answer Linear regression for seasonality Which of the following statements about time-series forecasting methods is TRUE? Check all that apply. - Correct Answer You choose a small value for "k" when using the Simple Moving Average method of order "k" to track movement in the most recent data.Linear Regression is the method of choice for data with a trend pattern.The Simple Average method is also known as the Historical Moving Average method.Linear Regression for Seasonality without Trend method is appropriate for data with a seasonal pattern only.Which of the following is NOT one of the forecast error metrics that you learned in this class? - Correct Answer Tracking signal It sums up all the errors available. - Correct Answer Cumulative forecast error It averages all the errors available. - Correct Answer Mean forecast error It averages all the absolute errors available. - Correct Answer Mean absolute error It sums up all the squared error available. - Correct Answer Sum of squared errors It divides the absolute error of a period by the actual value of that period. The resulting quotient is then multiplied by 100. - Correct Answer Absolute percentage error It takes the average of the absolute percentage error values over a range of time periods. - Correct Answer Mean absolute percentage Which of the following statements about CFE and MFE is FALSE? Check all that apply. - Correct Answer A positive CFE means the forecasting method is biased towards overestimating.They are unitless.CFE is the scaled down version of MFE.
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