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

(1) The second degree parabola is fitted to the time series when the variations are:
[A] Linear
[B] Nonlinear
[C] Random
[D] Downward
Answer: Nonlinear
(2) In fitting a second degree parabola, the value of c is not affected with the change of :
[A] Scale
[B] Origin
[C] Both (a) and (b)
[D] Neither (a) and (b)
Answer: Origin

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(3) For odd number of year, formula to code the values of X by taking origin at centre is:
[A] X = year – average of years
[B] X = year – first year
[C] X = year – last year
[D] X = year – ½ average of years
Answer: X = year – average of years
(4) For even number of years when origin is in the centre and the unit of X being one year, then X can be coded as:
[A] X = (year – average of years)/2
[B] X = year – average of years
[C] X = year – 0.5 average of years
[D] X = average of years – year
Answer: X = year – average of years
(5) For even number of years when origin is in the centre and the unit of X being half year, then X can be coded as:
[A] X = year – average of years
[B] X = 2(year – average of years)
[C] X = (year – average year)/2
[D] X = year – ½ average of years
Answer: X = 2(year – average of years)
(6) In semi averages method, if the number of values is odd then we drop:
[A] First value
[B] Last value
[C] Middle value
[D] Middle two values
Answer: Middle value
(7) The trend values in freehand curve method are obtained by:
[A] Equation of straight line
[B] Graph
[C] Second degree parabola
[D] All of the above
Answer: Graph
(8) ∑X = ∑X3 = 0, if origin is:
[A] At the end of time period
[B] Any where
[C] At the middle of time period
[D] At the beginning of time period
Answer: At the middle of time period
(9) Tests of hypotheses (t-test, f-test) incase of heteroscedasticity disturbance are
[A] Still valid
[B] Consistent
[C] No longer valid
[D] Unbiased
Answer: No longer valid
(10) While performing correlation, we draw scatter plot to check assumptions of
[A] Linearity
[B] Multicollinearity
[C] Unbiasness
[D] Homoscedasticity
Answer: Linearity

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