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Questions and Answers
What is the primary goal of the store manager in minimizing the mean squared error?
What is the primary goal of the store manager in minimizing the mean squared error?
- To find the average value of Yi
- To find the maximum value of YÌ‚
- To find the minimum value of SSE
- To find the value of YÌ‚ that minimizes the sum of squared errors (correct)
What is the notation used to denote the ith customer?
What is the notation used to denote the ith customer?
- i subscript (correct)
- ei subscript
- Yb subscript
- Y subscript
What is the result of taking the derivative of the sum of squared errors with respect to YÌ‚ and setting it equal to zero?
What is the result of taking the derivative of the sum of squared errors with respect to YÌ‚ and setting it equal to zero?
- 12 X (Yi - YÌ‚) = 0 (correct)
- 12 X (Yi + YÌ‚) = 0
- 12 X (Yi × Ŷ) = 0
- 12 X (Yi / YÌ‚) = 0
What is the value of YÌ‚ that minimizes the sum of the squared errors?
What is the value of YÌ‚ that minimizes the sum of the squared errors?
What is the purpose of rewriting equation (3) as equation (4)?
What is the purpose of rewriting equation (3) as equation (4)?
What is the relationship between the sum of squared errors and the mean squared error?
What is the relationship between the sum of squared errors and the mean squared error?
Why is it necessary to modify the initialization process in the stage of model development?
Why is it necessary to modify the initialization process in the stage of model development?
What is the assumption about the underlying process in the context of calculating the mean?
What is the assumption about the underlying process in the context of calculating the mean?
What is the primary objective of using past history data in averaging methods?
What is the primary objective of using past history data in averaging methods?
In Pegels' classification, under what conditions would the simple averaging method produce good results?
In Pegels' classification, under what conditions would the simple averaging method produce good results?
How many items need to be stored recursively for the calculation of the mean?
How many items need to be stored recursively for the calculation of the mean?
What is the main limitation of using the simple method of calculating the mean?
What is the main limitation of using the simple method of calculating the mean?
What is the formula to calculate the forecast for time t + 2 when a new observation becomes available?
What is the formula to calculate the forecast for time t + 2 when a new observation becomes available?
What is the purpose of stage 5 in the forecasting scenario?
What is the purpose of stage 5 in the forecasting scenario?
What is the purpose of specifying a fixed number of past observations in the moving averages method?
What is the purpose of specifying a fixed number of past observations in the moving averages method?
What is the primary difference between the mean and simple moving averages methods?
What is the primary difference between the mean and simple moving averages methods?
What happens to the oldest observation when a new observation becomes available in the moving averages method?
What happens to the oldest observation when a new observation becomes available in the moving averages method?
What is the number of data points in each average in the moving averages method?
What is the number of data points in each average in the moving averages method?
What is the primary effect of using a large value for k in a moving average forecasting system?
What is the primary effect of using a large value for k in a moving average forecasting system?
How do moving average forecasts of order k behave when k is small?
How do moving average forecasts of order k behave when k is small?
What is the algebraic formula for a moving average forecast of order k?
What is the algebraic formula for a moving average forecast of order k?
What is the adjustment made to the forecast Ft+1 to obtain the forecast Ft+2?
What is the adjustment made to the forecast Ft+1 to obtain the forecast Ft+2?
What is the effect of using a moving average forecasting system with a high order k?
What is the effect of using a moving average forecasting system with a high order k?
What is the primary advantage of using a moving average forecasting system with a small order k?
What is the primary advantage of using a moving average forecasting system with a small order k?
What do the deviations (Mi − M̄) represent?
What do the deviations (Mi − M̄) represent?
How are the squared deviations and the mean squared deviation (MSD) related?
How are the squared deviations and the mean squared deviation (MSD) related?
What information can be obtained by taking the square root of variance and mean squared deviation (MSD)?
What information can be obtained by taking the square root of variance and mean squared deviation (MSD)?
Why are both the Mean Absolute Deviation (MAD) and standard deviation (S) considered measures of spread?
Why are both the Mean Absolute Deviation (MAD) and standard deviation (S) considered measures of spread?
Why do MAD and S tend to be large when the data are spread out?
Why do MAD and S tend to be large when the data are spread out?
Approximately how many of the observations are within 1 standard deviation of the mean according to the useful rule of thumb?
Approximately how many of the observations are within 1 standard deviation of the mean according to the useful rule of thumb?
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