10 Questions
What is the main assumption underlying time series models?
All necessary information is contained within the time series data
Which pattern of data involves a constant level over time?
Level or horizontal
What type of model is linear regression with respect to forecasting?
Causal model
Which measure assesses the strength of the linear relationship between two variables in forecasting?
Correlation
When selecting a forecasting model, which factor is NOT typically considered?
Presence of seasonality in the data
Which forecasting method gives more weight to the most recent time periods?
Moving Averages
What does the Mean Absolute Deviation (MAD) measure?
Average absolute error
In the context of forecasting accuracy metrics, what does MSE stand for?
Mean Squared Error
Which forecasting method uses a smoothing constant to adjust the forecast?
Exponential Smoothing
What is the primary advantage of Moving Averages as a forecasting technique?
Easy to compute
Test your knowledge on time series forecasting models including the basic patterns of data and different forecast models like naïve, simple mean, and moving averages. Understand the assumptions behind time series models and causal models.
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