Economic Order Quantity and Significant Predictor. Essay

2198 Words Nov 16th, 2012 9 Pages
1. Stock prices over a period of fifty (50) years would most likely exhibit no cyclical component.

a. True b. False

2. On the plot labeled “a”, which of the following is correct?

a. There is a trend present. b. There is a linear relationship. c. There is an obvious outlier. d. There is a negative relationship.

3. On the plot labeled “b”, there is an outlier present.

a. True b. False

4. On the plot labeled “c”, which of the following models is most appropriate?

a. single-parameter exponential smoothing b. regression c. regression with seasonality (classical time-series) d. none of the above are appropriate

5. In a simple linear regression, we are
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b. We should stock fewer TVs. c. We should increase floor space, since it is probably constraining our sales ability. d. We should consider the time period.

16. What is the best answer given this information? (3)
| |Model 1 |Model 2 |Model 3 |
|X-variables |6 |4 |3 |
|R2 |.9344 |.8857 |.8761 |
|Adjusted R2 |.9058 |.8372 |.8497 |
|MSE |5667.53 |6044.05 |5844.78 |

a. Model 1 performs the best in all areas. b. Model 2 performs better than Model 3. c. We would most likely prefer Model 1. d. We would most likely prefer Model 2. e. We would most likely prefer Model 3.

17. The table below features three forecasting models used on the same set of data. Select all that apply.

| |Model 1 |Model 2 |Model 3 |
|Type |Single-parameter Exponential |2-parameter Exponential smoothing

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