Tag: time series and forecasting

Quizzes (7) Questions (23)

Questions Related to time series and forecasting

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

Which of the following is not one of the four types of variation that is estimated in time-series analysis?

  1. Predictable

  2. Trend

  3. Cyclical

  4. Irregular
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Four types of variations estimated in time-series analysis are :-

1. Trend
2. Seasonal
3. Cyclical
4. Irregular

Hence, A) Predictable is the correct option

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

The unsystematic sequence which follows irregular pattern of variations is called:

  1. Noise

  2. Signal

  3. Linear

  4. Non-Linear
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

By definition,
Noise is a component of time series which is the unsystematic sequence which follows irregular pattern of variations

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

A time series consists of:

  1. Short-term variations

  2. Long-term variations

  3. Irregular variations

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

$\Rightarrow$  A time series consist of $Short-term\,variations,\,Long-term\,variations\, and\, Irregular\,variation.$

$\Rightarrow$  $Short \,term\, variation -$ Seasonal trends are short term movements occurring in data due to seasonal factors. For example,  it is commonly observed that the consumption of ice-cream during summer is generally high and hence an ice-cream dealer's sales would be higher in some months of the year while relatively lower during winter months.
$\Rightarrow$  $Long\,term\, variation -$ The secular trend is the main component of a time series which results from long term effects of socio-economic and political factors. Prices and export and import data, for example, reflect obviously increasing tendencies over time.
$\Rightarrow$  $Irregular\,variation-$These are sudden changes occurring in a time series which are unlikely to be repeated. They are components of a time series. Floods, fires, earthquakes, revolutions, epidemics, strikes etc., are the root causes of such irregularities

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

Depression in business is:

  1. Secular trend

  2. Cyclical

  3. Seasonal

  4. Irregular
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

$\Rightarrow$  Depression in business is : $Cyclical $.

$\Rightarrow$  Depression phase - The depression or trough is the bottom of a cycle where economic activity remains at a highly low level. Income, employment, output, price level, etc. go down. 
$\Rightarrow$  A depression is generally characterized by high unemployment of labor and capital and a low level of consumer demand in relation to the economy’s capacity to produce. 
$\Rightarrow$  This deficiency in demand forces firms to cut back production and lay-off workers.

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

An orderly set of data arranged in accordance with their time of occurrence is called:

  1. Arithmetic series

  2. Harmonic series

  3. Geometric series

  4. Time series
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

From the definition of Time series,

Time series is an orderly set of data arranged in accordance with their time of occurrence.

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

If $A : B =3 : 4$ and $B : C =5 : 6$, then $A : C$ is

  1. $7:3$
  2. $3:4$
  3. $1:2$
  4. $5:9$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

$A:B=3:4$
 $B:C=5:6$
 $\therefore \frac { A }{ B } =\frac { 3 }{ 4 } & \frac { B }{ C } =\frac { 5 }{ 6 } $
 $\therefore \frac { A }{ B } \times \frac { B }{ C } =\frac { A }{ C } $
$\therefore \frac { 3 }{ 4 } \times \frac { 5 }{ 6 } =A:C$
 $=\frac { 15 }{ 24 } =\frac { 5 }{ 8 } $
A:C=5:8

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

A pattern that is repeated throughout a time series and has a recurrence period of at most one year is called

  1. Cyclical variation

  2. Irregular variation

  3. Seasonal variation

  4. Long term variation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$  A pattern that is repeated throughout a time series and has a recurrence period of at most one year is called $Seasonal\, variation$.

$\Rightarrow$  The seasonal variations may be due to various seasons or weather conditions for example sale of cold drink would go up in summers & go down in winters.
$\Rightarrow$   These variations may be also due to man-made conventions & due to habits, customs or traditions. For example, sales might go up during Diwali & Christmas or sales of restaurants & eateries might go down during Navratri’s.

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

Increase in the number of patients in the hospital due to heat stroke is:

  1. Secular trend

  2. Irregular variation

  3. Seasonal variation

  4. Cyclical variation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$  Increase in the number of patients in the hospital due to heat stroke is : $Seasonal\, variation.$

$\Rightarrow$  Over a span of one year, seasonal variation takes place due to the rhythmic forces which operate in a regular and periodic manner. These forces have the same or almost similar pattern year after year.
$\Rightarrow$  It is common knowledge that the value of many variables depends in part on the time of year.
$\Rightarrow$  Increase in number of  Heat stroke is one of example of seasonal variation because it's happens in every year in summer.

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

A complete cycle consists of a period of:

  1. Prosperity and depression

  2. Prosperity and recovery

  3. Prosperity and recession

  4. Recession and recovery
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$  A complete cycle consist of period of : $Prosperity\, and\, recession$.

$\Rightarrow$  $Prosperity\,phase$ : When there is an expansion of output, income, employment, prices and profits, there is also a rise in the standard of living. This period is termed as Prosperity phase.
$\Rightarrow$  $Recession Phase$ : The turning point from prosperity to depression is termed as Recession Phase.
During a recession period, the economic activities slow down. When demand starts falling, the overproduction and future investment plans are also given up. There is a steady decline in the output, income, employment, prices and profits.