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Time Series

Theory and Formula


Question


Q1. Cyclical variations are caused by _______________ .

(a) Waves

(b) Strikes

(c) Floods

(d) Government long term planning(more than 3 years)

Solution. d
Government long term planning(more than 3 years)
Solution

Q2. The trend component is easy to identify by using _________ .

(a) Moving averages

(b) Exponential smoothing

(c) Regression analysis

(d) Rank analysis

Solution. a
Moving averages
Solution

Q3. If a trend equation y = a + bx is fitted by least square method then which of the following statements are true ?

(a) a the fixed value of the equation and is y-intercept

(b) b indicates slope , it also shows upward or downword trend depending on its signs

(c) It is used for forcasting the future value of trend

(d) All of these

Solution. d
All of these
Solution

Q4. Time series has ______________ components and _________ models .

(a) 4,2

(b) 4,3

(c) 2,2

(d) 4,1

Solution. a
4,2
Solution

Q5. The principle of least square is a method to find a secular trend based on the sum of squares of residuals is

(a) Maximum

(b) Zero

(c) Minimum

(d) Negative

Solution. c
Minimum
Solution