Tag: uses of average in day-to-day life

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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. 

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 general pattern of increase or decrease in economics or social phenomena is shown by:

  1. Seasonal trend

  2. Cyclical trend

  3. Secular trend

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

$\Rightarrow$  The general pattern of increase or decrease in economics or social phenomena is shown by : $Secular\, trend$.

$\Rightarrow$  Term tendency of the time series to move in an upward or down ward direction. It indicates how on the whole, it has behaved over the entire period under reference.
$\Rightarrow$  These are result of long-term forces that gradually operate on the time series variable. A general tendency of a variable to increase, decrease or remain constant in long term.
$\Rightarrow$  Secular trend is be long-term tendency of the time series to move on upward or downward direction. It indicates how on the whole behaved over the entire period under reference.

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

Secular trend can be measured by:

  1. Two methods

  2. Three methods

  3. Four methods

  4. Five methods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$  Secular trend can be measured by: $Four\, methods.$

$\Rightarrow$  The four methods are: 
$(1)$  Graphic or a Freehand Curve Method.
$(2)$  Method of Semi Averages.
$(3)$  Method of Moving Averages.
$(4)$  Method of Least Squares.

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

Damages due to floods, droughts, strikes fires and political disturbances are:

  1. Trend

  2. Seasonal

  3. Cyclical

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

$\Rightarrow$  Damages due to floods, drought, strikes fires and political disturbances are : $Irregular$.

$\Rightarrow$  Irregular variations which occur on account of random external events.
$\Rightarrow$  These variations either go very deep downward or too high upward to attain peaks abruptly. These fluctuations are a result of unforeseen and unpredictably forces which operate in absolutely random or erratic manner.
$\Rightarrow$  These variations are due to floods, wars, famines, earthquakes, strikes, lockouts, epidemics etc.

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 method of moving average is used to find the:

  1. Secular trend

  2. Seasonal variation

  3. Cyclical variation

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

$\Rightarrow$  The method of moving average is used to find the : $Secular\, trend.$

$\Rightarrow$  A moving average is an average (Arithmetic mean) of fixed number of items (known as periods) which moves through a series by dropping the first item of the previously averaged group and adding the next item in each successive average.
$\Rightarrow$   The value so computed is considered the trend value for the unit of time falling at the center of the period used in the calculation of the average.

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 passes through:

  1. Two stages

  2. Three stages

  3. Four stages

  4. Difficult to tell
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$  A complete cycle passes through : $Four\, stages$.

$\Rightarrow$  Four stages are : 

$(1)$  Prosperity Stage : Expansion or Boom or Upswing of economy.
$(2)$  Recession Stage : from prosperity to recession (upper turning point).
$(3)$  Depression Stage : Contraction or Downswing of economy.
$(4)$  Recovery Stage : from depression to prosperity (lower turning Point).