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QMB 3200 Exam Test Study Guide Questions and Answers (Verified Answers) 1.A chi-squared test is a method of testing the hypothesis that :: 1. Two or more proportions are equal 2.Determine if data follow a particular pattern, which is also known as a goodness of fit test 3.Testing two categorical variables for independence 2.ANOVA tests the hypothesis that
: three or more populations means are equal.
3.Forecasting techniques can be classified in two broad categories :: 1. Quan- titative Forecasting
- Qualitative Forecasting 1 / 3
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4.What is forecasting
?: a method to predict or estimate a future event and is extremely
important in many venues ´Predicting sales ´Developing budgets ´Predicting tax revenues ´Predicting economic trends 5.MSE formula
: 1/n1e_t^2 =(-1)^2+(2)^2+...+(-11.67)^2)/18=208.90
6.MAD formula
: 1/n1|et| =(|-1|+|2|+...+|-11.67|)/18=11.85
7.Error term formula :: Observation - predicted value (or Moving AVG) 8.The linear trend model is a linear regression model that uses as the predictor 2 / 3
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.: time
9.Trend projection is a forecasting technique that
: projects into the future a linear regression equation that best fits
the data in a time series 10.The linear trend model is used to
: extract long-term upward or downward movements of the time
series.
11.Exponential smoothing adjusts the previous forecast with a portion of
: the previous period's forecasting error
-Needs constant revising 12.The simple exponential smoothing technique assigns exponentially de- creasing weights as the observations get
: older
13.The moving average technique has shortcomings :: 1. Choice of m is arbi- trary
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