Question Details

Which of the following barometric indicators would be the most helpful 



1.	Seasonal variations can be incorporated into a time-series model in a number of different ways, including:
a.	ratio-to-trend method
b.	use of dummy variables
c.	root mean squared error method
d.	a and b only
e.	a, b, and c


	

2.	For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use?
a.	ordinary least squares regression on historical data
b.	market experiments, where the price is set differently in two markets
c.	consumer surveys, where potential customers hear about the product and are asked their opinions
d.	double log functional form regression model
e.	all of the above are equally useful in this case

		

3.	Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?
	a.	lagging economic indicators.
	b.	leading economic indicators.
	c.	coincident economic indicators.
	d.	wishful thinking
	e.	none of the above

		

4.	An example of a time series data set is one for which the:
	a.	data would be collected for a given firm for several consecutive periods (e.g., months).
	b.	data would be collected for several different firms at a single point in time.
	c.	regression analysis comes from data randomly taken from different points in time.
	d.	data is created from a random number generation program.
	d.	use of regression analysis would impossible in time series.

		

5.	Examine the plot of data.  
	Sales

				ï‚©		ï‚©		ï‚©
				ï‚©	ï‚©	ï‚©	ï‚©	ï‚©
					ï‚©		ï‚©

								Time	
It is likely that the best forecasting method for this plot would be:
a.	a two-period moving average
b.	a secular trend upward
c.	a seasonal pattern that can be modeled using dummy variables or seasonal adjustments
d.	a semi-log regression model
e.	a cubic functional form



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