Podcast
Questions and Answers
What is the main assumption underlying time series models?
What is the main assumption underlying time series models?
- The variable being forecast is related to other variables in the environment
- Forecasting involves a linear regression model
- All necessary information is contained within the time series data (correct)
- Random variations are the key factor in forecasting accuracy
Which pattern of data involves a constant level over time?
Which pattern of data involves a constant level over time?
- Seasonality
- Trend
- Cycles
- Level or horizontal (correct)
What type of model is linear regression with respect to forecasting?
What type of model is linear regression with respect to forecasting?
- Causal model (correct)
- Time series model
- Exponential model
- Naïve model
Which measure assesses the strength of the linear relationship between two variables in forecasting?
Which measure assesses the strength of the linear relationship between two variables in forecasting?
When selecting a forecasting model, which factor is NOT typically considered?
When selecting a forecasting model, which factor is NOT typically considered?
Which forecasting method gives more weight to the most recent time periods?
Which forecasting method gives more weight to the most recent time periods?
What does the Mean Absolute Deviation (MAD) measure?
What does the Mean Absolute Deviation (MAD) measure?
In the context of forecasting accuracy metrics, what does MSE stand for?
In the context of forecasting accuracy metrics, what does MSE stand for?
Which forecasting method uses a smoothing constant to adjust the forecast?
Which forecasting method uses a smoothing constant to adjust the forecast?
What is the primary advantage of Moving Averages as a forecasting technique?
What is the primary advantage of Moving Averages as a forecasting technique?
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