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Time Series Analysis Exams Questions and Answers | Time Series Analysis MCQs Quiz

(1) The best fitting trend is one which the sum of squares of residuals is:
[A] Negative
[B] Least
[C] Zero
[D] Maximum
Answer: Least
(2) In fitting of a straight line, the value of slope remains unchanged by change of:
[A] Scale
[B] Origin
[C] Both origin and scale
[D] None of them
Answer: Origin

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(3) Depression in business is:
[A] Secular trend
[B] Cyclical
[C] Seasonal
[D] Irregular
Answer: Cyclical
(4) Semi-averages method is used for measurement of trend when:
[A] Trend is linear
[B] Observed data contains yearly values
[C] The given time series contains odd number of values
[D] None of them
Answer: Trend is linear
(5) Moving-averages:
[A] Give the trend in a straight line
[B] Measure the seasonal variations
[C] Smooth-out the time series
[D] None of them
Answer: Smooth-out the time series
(6) The rise and fall of a time series over periods longer than one year is called:
[A] Secular trend
[B] Seasonal movements
[C] Cyclical variations
[D] Irregular variations
Answer: Cyclical variations
(7) A time series has:
[A] Two components
[B] Three components
[C] Four components
[D] Five components
Answer: Four components
(8) The multiplicative time series model is:
[A] Y = T + S + C + I
[B] Y = TSCI
[C] Y = a + bX
[D] Y = a + bX + cX2
Answer: Y = TSCI
(9) The additive model of the time series is:
[A] Y = T + S + C + I
[B] Y = TSCI
[C] Y = a + bX
[D] Y = a + bX + cX2
Answer: Y = T + S + C + I
(10) The difference between the actual value of the time series and the forecasted value is called:
[A] Residual
[B] Sum of variation
[C] Sum of squares of residual
[D] All of the above
Answer: Residual

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