Week 3: Exponential Smoothing Techniques
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Questions and Answers

During which stage do the paddy plants enter the reproductive phase?

  • Transplanting Stage
  • Heading Stage (correct)
  • Harvesting Stage
  • Land Preparation Stage
  • What is the primary focus of farmers during the first stage of paddy crop production?

  • Forming grain heads or panicles
  • Harvesting mature paddy crops
  • Preparing irrigation systems and leveling the land (correct)
  • Transplanting paddy seedlings
  • What marks the end of the crop cycle and the culmination of the farming process for that season?

  • Land preparation
  • Transplanting
  • Heading
  • Harvesting (correct)
  • What is the outcome of advancements in irrigation techniques or improved seed varieties on paddy crop production?

    <p>Positive trend</p> Signup and view all the answers

    In which stage does the crop area gradually increase as more seedlings are transplanted?

    <p>Transplanting Stage</p> Signup and view all the answers

    What is the purpose of the principle of decomposition in understanding paddy crop production?

    <p>To understand the variations in paddy crop production across different stages</p> Signup and view all the answers

    What is the root cause of the cyclical behavior observed in the monthly sales of new one-family houses sold in the United States?

    <p>Economic health and confidence of the nation</p> Signup and view all the answers

    What is the primary purpose of a decomposition plot?

    <p>To visualize the decomposition procedure</p> Signup and view all the answers

    Which method is used to obtain the estimates of the cyclical, seasonal, and irregular components in Figure 1?

    <p>STL method</p> Signup and view all the answers

    What is the name of the authors who introduced decomposition plots?

    <p>Cleveland and Terpenning</p> Signup and view all the answers

    What is the primary purpose of the bars on the right-hand side of the plots in Figure 1?

    <p>To show the different scales used in the plots</p> Signup and view all the answers

    What is the application of additive decomposition described by Baxter in 1994?

    <p>Pseudo-additive decomposition</p> Signup and view all the answers

    What is the primary extension of simple exponential smoothing in Double Exponential Smoothing?

    <p>Adding a trend component to the level smoothing equation</p> Signup and view all the answers

    Which of the following is NOT a common application of Double Exponential Smoothing?

    <p>Quality control in manufacturing</p> Signup and view all the answers

    What is the primary advantage of using Double Exponential Smoothing in finance?

    <p>It helps to identify trends in the market</p> Signup and view all the answers

    Which of the following is an example of a time series with a trend?

    <p>Annual demand data with a increasing trend</p> Signup and view all the answers

    What is the primary benefit of using Double Exponential Smoothing in inventory management?

    <p>It allows for the optimization of stock levels and minimization of holding costs</p> Signup and view all the answers

    What is the primary difference between Double Exponential Smoothing and Simple Exponential Smoothing?

    <p>The ability to handle trends in the data</p> Signup and view all the answers

    What is the purpose of Step 2 in the classical decomposition of time series?

    <p>To remove the trend-cycle component from the data</p> Signup and view all the answers

    What is the assumption made about the seasonal component in classical decomposition?

    <p>It is constant from year to year</p> Signup and view all the answers

    How are the seasonal indices calculated in classical decomposition?

    <p>By taking the average of all the de-trended values for a given month</p> Signup and view all the answers

    What is the purpose of the de-trended series in classical decomposition?

    <p>To identify the seasonal component</p> Signup and view all the answers

    What is the result of subtracting the trend-cycle component from the original data series?

    <p>The de-trended series</p> Signup and view all the answers

    What is the final step in the classical decomposition of time series?

    <p>Computing the irregular series</p> Signup and view all the answers

    What is the purpose of calculating the ratio of the data to the moving averages?

    <p>To isolate the seasonal and irregular components</p> Signup and view all the answers

    What is the assumption made about the seasonal component in the decomposition process?

    <p>It is constant from year to year</p> Signup and view all the answers

    What is the meaning of stationarity in a time series?

    <p>The data fluctuates around a constant mean</p> Signup and view all the answers

    What is the formula to calculate the irregular series Et?

    <p>Et = Yt / (StTt)</p> Signup and view all the answers

    What is the purpose of multiplying the de-trended values by 100?

    <p>To express the values as percentages</p> Signup and view all the answers

    What is the name of the method used to decompose the time series into its components?

    <p>Ratio-to-Moving-Averages Method</p> Signup and view all the answers

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