All Questions - Quantitative Methods

7/31/2019 All Questions - Quantitative Methods

1/53

Chapter 1

1. Information is

A. ? all the facts and figures

B. ? the creation of a database

C. ? the selective use of data to inform the user

D. ? a summary of the solutions

2. The quantitative approach requires

A. ? a scientific rigour in the collection of data

B. ? the selective use of data

C. ? the correctness of calculation

D. ? all of the above

3. Primary data

A. ? is collected for a specific purpose

B. ? can be any data

C. ? is supplementary data

D. ? is none of the above

4. A parameter

A. ? is a quantity or characteristic allowed to change within a particular problem

B. ? takes a fixed value for a particular problem

C. ? is always the same value


2/53

D. ? is always a different value

5. The level of measurement achieved by recording whether the person reading this book

likes or dislikes the layout of a scale 1 to 5 is

A. ? nominal

B. ? ordinal

C. ? interval

D. ? ratio

6. The level of measurement achieved by recording whether the respondent smokescigarettes or not is

A. ? nominal

B. ? ordinal

C. ? interval

D. ? ratio

7. The level of measurement achieved by calculating the travel distance of shoppers

A. ? nominal

B. ? ordinal

C. ? interval

D. ? ratio

8. Scoring models could be used for

A. ? a cashflow forecast

B. ? breakeven analysis


3/53

C. ? clarifying the choices between options that involve a number of factors

D. ? the evaluation of a saving scheme


4/53

Chapter 2

1. Data is

A. ? a coding of responses from a questionnaire

B. ? a set of facts and figures from a database

C. ? information collected for other purposes

D. :-) all of the above

2. Secondary data

A. :-) already exists for other purposes

B. ? is used only second

C. ? is always second best

D. ? none of the above

3. Ws and H

A. X is a coding of data

B. :-) is a techniques for clarifying a problem or issue

C. ? is a formula

D. ? is a way of asking why 5 times

4. A good source of government statistics is

A. ? www.ebay.co.uk

B. ? www.bhs.org.uk


5/53

C. :-) www.statistics.gov.uk

D. ? www.amazon.co.uk

5. We need to be cautious when using data from the internet because

A. X sources may not be known

B. X possible bias

C. X incompleteness


6. A survey may be preferred to a census

A. X because of cost constraints

B. X because the methodology is adequate

C. X because of time constraints


7. A smaller sample size can be used

A. :-) if the variability in the population is smaller

B. ? if greater accuracy if required

C. ? if more detailed analysis is to be undertaken

D. ? none of these

8. Market research

A. X cannot estimate the market share of brands produced by other companies

B. X can provide an alternative to statistical analysis


6/53

C. :-) can provide information on customer satisfaction

D. ? cannot provide acceptable information on politically sensitive issues such ascarbon emission and health service provision


7/53

Chapter 3

1. To reflect the opinions of a population a survey needs to

A. ? Ask everyones opinion

B. ? Ask opinions from any small group

C. ? Ask the opinions of a representative group

D. ? Ask opinions from the first 100 people you meet

2. A cluster sample will

A. ? Seek views from a homogeneous group in the population

B. ? Seek views from a heterogeneous group in the population

C. ? Seek views from any group in the population

D. ? Seek views from everyone who attends a group discussion

3. A two stage random sample

A. ? Takes a random sample of groups and then a random sample in each selectedone

B. ? Takes a random sample and then a second one

C. ? Takes a random sample from every group in the population

D. ? Takes a random sample and analyses it in two stages

4. A longitudinal survey

A. ? Follows a group as they travel

B. ? Follows a group over many years

C. ? Follows a group for a week


8/53

D. ? Follows a group as they grow up

5. 5 The question Most people liked this chocolate bar, do you? is

A. ? A hypothetical question

B. ? A question which contains jargon

C. ? Two questions as one

D. ? A leading question

6. The question Do you eat this food because it is good for you and you like it? is





7. The question How early do you usually do your Christmas shopping? is





8. The question How would you manage this situation if you were the manager? is





9/53


9. Gallup identified how many question objectives?

A. ? 2

B. ? 3

C. ? 4

D. ? 5

10. Sampling methodology

A. ? Is crucial to obtaining meaningful results

B. ? Is a description of how the sampling was done

C. ? Allows the results to be replicated

D. ? All of these


10/53

Chapter 4

1. Component bar charts have

A. ? All bars the same length

B. ? Bars for percentages of each component

C. ? Bars built up from sections for each component

D. ? Are coloured to reflect the components

2. Pie charts can be used for

A. ? Annual company reports

B. ? Degree dissertations

C. ? Publicity materials

D. ? Any of these

3. 3 Earnings data is

A. ? Categorical data

B. ? Ordinal data

C. ? Interval data

D. ? Ratio data

4. If the figure for sales was 50 last year and is 61 this year, the percentage rise is

A. ? 10

B. ? 11


11/53

C. ? 18

D. ? 22

5. If the following years figure is 65, the percentage rise is

A. ? 4

B. ? 6.1

C. ? 6.5

D. ? 15


12/53

Chapter 6

1. Averages are

A. ? A typical value

B. ? A measure of location

C. ? A measure of central tendency

D. ? All of these

2. In a normal distribution

A. ? The mean is above the median and mode

B. ? The mean is below the median and mode

C. ? The mean is equal to the mean and mode

D. ? The mean is between the median and mode

3. Data Set 1: 14, 12, 17, 25, 14, 19, 30

For data set 1, the arithmetic mean is

A. ? 14

B. ? 17

C. ? 18.7

D. ? 25

4. For data set 1 the median is

A. ? 14


13/53

B. ? 17

C. ? 18.7

D. ? 25

5. For data set 1 the mode is

A. ? 14

B. ? 17

C. ? 18.7

D. ? 25

6. If the final number were recorded as 300 the mean would be

A. ? 17

B. ? 25

C. ? 57.3

D. ? 61.6

7. If the final number were recorded as 300, the median would be

A. ? 17

B. ? 25

C. ? 57.3

D. ? 61.6

8. Data Set 2:X f10 65


14/53

20 2530 10

For data set 2 the mean is

A. ? 10

B. ? 14.5

C. ? 15

D. ? 20

9. For data set 2 the median is

A. ? 10

B. ? 14.5

C. ? 15

D. ? 20

10. For data set 2 the mode is

A. ? 10

B. ? 14.5

C. ? 15

D. ? 20


15/53


16/53

C. ? 21

D. ? 23

5. For Data Set 1 the quartile deviation is:

A. ? 5.5

B. ? 6.5

C. ? 21

D. ? 23

6. For Data Set 1 the variance is:

A. ? 30.25

B. ? 43.14

C. ? 441

D. ? 529

7. Data Set 2: mean = 30, median = 25, standard deviation = 4

For data set 2 the coefficient of variation is

A. ? -3.75

B. ? +3.75

C. ? +7.5

D. ? +13.3

8. For data set 2 the coefficient of skewness is

A. ? -3.75


17/53

B. ? +3.75

C. ? +7.5

D. ? +13.3

9. A decile represents a point in the data

A. ? At a 10% value

B. ? At a 5% value

C. ? At a 1% value

D. ? At none of these

10. Highly skewed data is best described by

A. ? Range

B. ? Variance

C. ? Quartile deviation

D. ? Percentiles


18/53

Chapter 7

1. Year Index1 1082 1123 1164 1245 131

From the data above, the percentage change from year 1 to year 2 is

A. ? 3.6

B. ? 3.7

C. ? 5.6

D. ? 6.9

2. From the data above, the percentage change from year 2 to year 3 is

A. ? 3.6

B. ? 3.7

C. ? 5.6

D. ? 6.9

3. From the data above, if the index were rebased so that Year 3 = 100, the index for year1 would be

A. ? 93.1

B. ? 100

C. ? 112.9

D. ? 116


19/53


A. ? 93.1

B. ? 100

C. ? 112.9

D. ? 116

5.

From the data above, the price relative for item B for the second year is

A. ? 1.050

B. ? 1.1375

C. ? 1.167

D. ? 1.200

6. From the data above, the aggregative price for the second year is

A. ? 105.0

B. ? 113.75

C. ? 116.7

D. ? 120.0

7. From the data above, the Laspeyres all items Price index for the second year is

A. ? 100.0

B. ? 108.0


20/53

C. ? 112.0

D. ? 121.8

8. From the data above, the Paasche all items Price index for the second year is

A. ? 100.0

B. ? 108.0

C. ? 112.8

D. ? 121.8

9. From the data above, the all items Value index for the second year is

A. ? 100.0

B. ? 108.0

C. ? 112.8

D. ? 121.8

10. The Retail Prices Index uses

A. ? 11 items

B. ? 100 items

C. ? 350 items

D. ? 650 items

11. Year Index1 1082 1123 1164 124


21/53

5 131

From the data above, the percentage change from year 1 to year 2 is

A. ? 3.6

B. ? 3.7

C. ? 5.6

D. ? 6.9

12. From the data above, the percentage change from year 2 to year 3 is

A. ? 3.6

B. ? 3.7

C. ? 5.6

D. ? 6.9


A. ? 93.1

B. ? 100

C. ? 112.9

D. ? 116

14. From the data above, if the index were rebased so that Year 3 = 100, the index for year

5 would be

A. ? 93.1

B. ? 100

C. ? 112.9


22/53

D. ? 116

15.

From the data above, the price relative for item B for the second year is

A. ? 1.050

B. ? 1.1375

C. ? 1.167

D. ? 1.200

16. From the data above, the aggregative price for the second year is

A. ? 105.0

B. ? 113.75

C. ? 116.7

D. ? 120.0

17. From the data above, the Laspeyres all items Price index for the second year is

A. ? 100.0

B. ? 108.0

C. ? 112.0

D. ? 121.8

18. From the data above, the Paasche all items Price index for the second year is

A. ? 100.0


23/53

B. ? 108.0

C. ? 112.8

D. ? 121.8

19. From the data above, the all items Value index for the second year is

A. ? 100.0

B. ? 108.0

C. ? 112.8

D. ? 121.8

20. The Retail Prices Index uses

A. ? 11 items

B. ? 100 items

C. ? 350 items

D. ? 650 items


24/53

Chapter 8

1. Throwing a die, the probability of an even number is

A. ? 1/6

B. ? 2/6

C. ? 3/6

D. ? 4/6

2. Throwing 2 die, the probability of an even total score is

A. ? 6/36

B. ? 9/36

C. ? 18/36

D. ? 27/36

3. Throwing 2 die, the probability of an total score below 6 is

A. ? 6/36

B. ? 16/36

C. ? 20/36

D. ? 26/36

4. From a standard pack of cards, the probability of selecting an Ace or a Spade is

A. ? 13/52

B. ? 16/52


25/53


26/53


27/53

Chapter 9

1. A table of random numbers has a

A. ? Normal distribution

B. ? Uniform distribution

C. ? Binomial distribution

D. ? Poisson distribution

2. A binomial distribution has

A. ? A variable chance of success

B. ? An unlimited number of trials

C. ? Many outcomes

D. ? Independence of events

3. The number of ways of picking 4 from 6 is

A. ? 15

B. ? 20

C. ? 24

D. ? 720

4. The number of ways to pick 2 from 6 is

A. ? 15

B. ? 20


28/53

C. ? 24

D. ? 720

5. For a binomial probability distribution with n=5 and p=0.2, the probability of 2successes is:

A. ? 0.05792

B. ? 0.08

C. ? 0.2048

D. ? 0.26272

6. For the same distribution, the probability of less than 3 successes is:

A. ? 0.05792

B. ? 0.08

C. ? 0.2048

D. ? 0.26272

7. For the same distribution, the probability of more than 3 successes is:

A. ? 0.2048

B. ? 0.26272

C. ? 0.73728

D. ? 0.94208

8. For a poisson distribution with an average of 1`, the probability of zero successes is:

A. ? 0.2642


29/53

B. ? 0.3679

C. ? 0.6321

D. ? 0.7358

9. For the same distribution, the probability of more than 1 is:

A. ? 0.2642

B. ? 0.3679

C. ? 0.6321

D. ? 0.7358

10. For a poisson distribution, the mean is:

A. ? n

B. ? np

C. ? npq

D. ? npq


30/53

Chapter 10

1. A Normal Distribution is

A. ? symmetrical

B. ? bimodal

C. ? skewed

D. ? uniform

2. A normal distribution with a mean of 100 and a standard deviation of 10 has 5% of thevalues above:

A. ? 101.645

B. ? 101.96

C. ? 116.45

D. ? 119.6

3. The same distribution has 97.5% of values below:

A. ? 101.645

B. ? 101.96

C. ? 116.45

D. ? 119.6

4. For a standard normal distribution, the area to the right of z=+1.5 is:

A. ? 0.0668

B. ? 0.1469

C. ? 0.8531


31/53

D. ? 0.9332

5. For a standard normal distribution, the area to the left of z=+1.05 is:

A. ? 0.0668

B. ? 0.1469

C. ? 0.8531

D. ? 0.9332

6. For a standard normal distribution, the area to the right of z= -2.03 is:

A. ? 0.01072

B. ? 0.02118

C. ? 0.97882

D. ? 0.98928

7. For a standard normal distribution, the area between z= -2 and z=+1 is:

A. ? 0.18095

B. ? 0.31905

C. ? 0.61430

D. ? 0.81905

8. For a standard normal distribution, the area between z= +0.5 and z=+1 is:

A. ? 0.1503

B. ? 0.4667

C. ? 0.5333


32/53

D. ? 0.8497

9. IQ scores are said to be normal with a mean of 100 and a standard deviation of 10.

What percentage of people will have an IQ of over 120:

A. ? 2.275%

B. ? 11.51%

C. ? 15.87%

D. ? 22.75%

10. For the same IQ distribution, what percentage will be below 95?

A. ? 3.85%

B. ? 30.85%

C. ? 50%

D. ? 69.15%


33/53

Chapter 11

1. You can take a smaller sample if

A. ? you want to do a more detailed analysis of subgroups

B. ? less accuracy is acceptable

C. ? a higher level of confidence is required

D. ? there is more variability in the population

2. If you decide to use a 95% confidence interval rather than a 99% confidence interval youwould expect the confidence interval to become

A. ? wider

B. ? stay the same

C. ? smaller

D. ? increase by 4%

3. Given the sample statistics n = 80, = 9.90 and s = 1.84 , the 95% confidence intervalis given by

A. ? = 9.90 0.40

B. ? = 9.90 1.84

C. ? = 8.06 1.84

D. ? = 9.90 3.61

4. To estimate the true mean to within 5.00 with a 95% confidence interval, given astandard deviation of 56.50 requires a sample size of

A. ? 100

B. ? 250


34/53

C. ? 500

D. ? 1000

5. In a survey of 300 call customers, 33 complain that connection time is a problem forthem. The 95% confidence interval is

A. ? 33 2%

B. ? 33 4%

C. ? 11% 2%

D. ? 11% 4%

6. Assuming a worse case scenario that p = 50% the sampling size required to give a 95%confidence interval with a sampling error of no more that 2% is

A. ? 1000

B. ? 1500

C. ? 2000

D. ? 2500

7. Given n1 = 150, x1 = 78.40, s1 = 8.20 and n2 = 180, x2 = 72.00, s2 = 6.45 the 95%confidence interval for the difference of means is given by

A. ? 6.40 1.62

B. ? 6.40 1.96

C. ? 6.40 0.82

D. ? 6.40 3.24

8. Given n1 = 150, p1 = 7% and n2 = 180, p2 = 4% the 95% confidence interval for thedifference of means is given by


35/53

A. ? 3% 3%

B. ? 3% 5%

C. ? 3% 7%

D. ? 3% 9%

9. A sample of 70 is taken from a population of 80. The finite population correction factor is

A. ? 0.9354

B. ? 0.875

C. ? 0.3536

D. ? none of these

10. A random sample of 8 business transactions was selected from a large number of suchtransactions. The degrees of freedom and the critical value using the t-distribution for the95% confidence interval would be

A. ? = 7 and cv = 1.895

B. ? = 8 and cv = 1.860

C. ? = 7 and cv = 2.365

D. ? = 6 and cv = 2.447


36/53

Chapter 12

1. A hypothesis

A. ? is always a good idea

B. ? can always be accepted if the sample is large enough

C. ? a concept that should be accepted


2. The larger the value of the test statistic the more likely you are to

A. ? reject the alternative hypothesis

B. ? accept the null hypothesis

C. ? reject the null hypothesis

D. ? reject the null hypothesis and reject the alternative hypothesis

3. Given H0: = 100, H1: 100, a significance level of 5% and z = 2.07

A. ? you would accept the null hypothesis

B. ? you would reject the null hypothesis

C. ? you would change the level of significance

D. ? you would accept the alternative hypothesis

4. Given H0: = 50%, H1: 50%, a significance level of 5% and z = -1.04

A. ? you would accept the null hypothesis

B. ? you would reject the null hypothesis

C. ? you would change the level of significance


37/53

D. ? you would accept the alternative hypothesis

5. A Local Authority is interested in whether the average travel distance to school within a

study area has remained at 2 miles or has increased The hypotheses can be stated as:

A. ? H0 = 2 H1 2

B. ? H0 = 2 H1 < 2

C. ? H0 = 2 H1 > 2

D. ? H0 < 2 H1 = 2

6. The marketing department claims that 60% of customers are aware of the full range ofthe products offered by the company. Senior management thinks it could be less. Thehypotheses can be stated as:

A. ? H0 = 60% H1 60%

B. ? H0 = 60% H1 < 60%

C. ? H0 = 60% H1 > 60%

D. ? H0 < 60% H1 = 60%

7. Given H0 (1 2) = 0 and H1 ( 1 2) < 0 where is a percentage, we are testing

A. ? a null hypothesis that the percentage in population 1 is smaller than thepercentage in population 2

B. ? a null hypothesis that the than the percentage population 1 is larger than thepercentage population 2

C. ? a null hypothesis of no difference against an alternative that the percentage ofpopulation 1 is smaller that population 2

D. ? a null hypothesis of no difference against an alternative that the percentage ofpopulation 1 is larger that population 2


38/53


39/53

Chapter 13

1. A parametric test requires the following conditions

A. ? a null hypothesis that can be stated in terms of a parameter

B. ? a meaningful level of measurement has been achieved that gives validity todifference

C. ? a test statistic that follows a known distribution

D. ? all of the above is true

2. A non-parametric test requires

A. ? a null hypothesis

B. ? the calculation of a test statistic

C. ? the use of critical values


3. A chi-squared test statistic of 16.548 has been calculated for a 4 by 5 cross tabulation(with all expected frequencies above 5). Using a 5% significance level

A. ? you would compare with a critical value of 21.0 and not reject the nullhypothesis

B. ? you would compare with a critical value of 21.0 and reject the null hypothesis

C. ? you would compare with a critical value of 14.8 and not reject the nullhypothesis

D. ? you would compare with a critical value of 14.8 and reject the null hypothesis

4. A frequency table has been used to report the length of life of a component. The tablehas 8 intervals and has been used to calculate the sample mean and sample standarddeviation. It has been decided to test at the 1% significance level whether the length oflife follows a normal distribution. A chi-squared test statistic of 13.246 was calculated by


40/53

comparing the observed and expected frequencies (with all expected frequencies above5). You would compare the chi-squared value with a critical value of

A. ? 11.1 and not reject the null hypothesis

B. ? 11.1 and reject the null hypothesis

C. ? 15.1 and not reject the null hypothesis

D. ? 15.1 and reject the null hypothesis

5. You are using the Mann-Whitney U test for a small sample and have been given thefollowing summary:

Rank Sample

1 22 23.5 13.5 25 16 27 18.5 18.5 210 211 112 1

Using a 5% significance level

A. ? you would compare a T value of 10 with a critical value of U of 6 and reject nullhypothesis

B. ? you would compare a T value of 10 with a critical value of U of 6 and not rejectnull hypothesis

C. ? you would compare a T value of 10 with a critical value of U of 6 and reject nullhypothesis

D. ? you would compare a T value of 10.5 with a critical value of U of 12 and notreject null hypothesis


41/53

6. You are using the Mann-Whitney U test for a large sample and have been given thefollowing statistics: T = 258, n1 = 15 and n2 = 25. Using a 5% significance level youwould compare a z value of

A. ? +1.87 with +1.645 and reject null hypothesis

B. ? +1.87 with +1.96 and not reject null hypothesis

C. ? -2.87with +1.96 and reject null hypothesis

D. ? +2.87 with +1.96 and not reject null hypothesis

7. A company has identified a number of fraudulent claims. To test whether they arerandom they should use a:

A. ? Mann-Whitney U test for small samples

B. ? Wilcoxon test for small samples

C. ? Wilcoxon test for large samples

D. ? Runs test


42/53

Chapter 14

1. Correlation is a measure of

A. ? cause and effect

B. ? the intercept

C. ? the change in y

D. ? none of these

2. A correlation coefficient cannot take the value

A. ? 0

B. ? -1

C. ? +1.50

D. ? 0.5567

3. A perfect positive relationship is indicated by the correlation coefficient

A. ? +1

B. ? 0

C. ? -1

D. ? 100%

4. You have been given the following data for y and x:

You would expect the correlation coefficient that you would calculate to equal

A. ? +1

B. ? 0


43/53

C. ? -1

D. ? any value between -1 and +1


You would expect the correlation coefficient that you would calculate to equal

A. ? +1

B. ? 0

C. ? -1

D. ? none of these

6. A correlation coefficient near +1 would suggest

A. ? a limited correlation

B. ? a complete set of data

C. ? a strong positive relationship

D. ? a strong negative relationship

7. A Spearmans coefficient of rank correlation near to 0 would suggest

A. ? the need for an alternative test

B. ? a poor relationship

C. ? the possibility of a negative relationship

D. ? the need fro improved measurement


44/53

8. The coefficient of determination of 90% would suggest

A. ? there is a good explanation of cause and effect

B. ? there is a limited explanation of cause and effect

C. ? that most of the variation in the data has been explained

D. ? there is a lack of explanation of variation in the data

9. Transformation of the data can

A. ? improve the quality of the data

B. ? increase the amount of data

C. ? improve the fit of a linear relationship

D. ? identify non-linear relationships

10. Using a test of significance for the correlation coefficient

A. ? we may be able to accept the alternative hypothesis that some relationshipexists

B. ? we may be able to accept the null hypothesis that some relationship exists

C. ? we may be able to reject the null hypothesis that some relationship exists



45/53

Chapter 15

1. The regression line may be referred to as

A. ? the line of best fit

B. ? the least squares line

C. ? the regression of y on x


2. If the correlation coefficient is equal to +1 then

A. ? all points will lie on a line sloping upwards to the right

B. ? all points will lie on a line sloping downwards to the right

C. ? some points will lie on a line sloping upwards to the right

D. ? some points will lie on a line sloping downwards to the right

3. If the correlation coefficient is equal to -0.3 then we would expect to make

A. ? good predictions from a regression line sloping upwards to the right

B. ? good predictions from a regression line sloping downwards to the right

C. ? poor predictions from a regression line sloping upwards to the right

D. ? poor predictions from a regression line sloping downwards to the right

4.

Which of the following equations best describe this data?

A. ? y = 8 + 12x

B. ? y = 12 + 8x


46/53

C. ? y = 8

D. ? y = 12


Which of the following equations best describe this data?

A. ? y = 11 + 3x

B. ? y = 20 + 3x

C. ? y = 11 + 5x

D. ? y = 20 + 5x


x 15 16 17 17 18y 71 72 74 84 87

Which of the following regression lines do you think would best fit this data?

Hint: you should be helpful to draw the scatter diagram first

A. ? y = -12.42 - 5.42x

B. ? y = -12.42 + 5.42x

C. ? y = +12.42 + 5.42x

D. ? y = +12.42 - 5.42x

7. If the value we would predict for y given x = 9 is

A. ? 212.6

B. ? 212.8

C. ? 213.8


47/53

D. ? 214.6

8. If the value we would predict for y given x = -12 is

A. ? -117

B. ? 117

C. ? -87

D. ? 87

9. Extrapolation is

A. ? prediction outside the range of the data

B. ? any prediction

C. ? prediction within the range of the data

D. ? no prediction

10. A transformation to linearity

A. ? will allow regression analysis to be used

B. ? will reduce the correlation coefficient

C. ? limit further analysis

D. ? is unnecessary provided you have sufficient data


48/53

Chapter 16

1. Multiple regression relates

A. ? the dependent variable y to two or more explanatory variables

B. ? the dependent variable y to two or more dependent variables

C. ? an explanatory variable to one or more dependent variables

D. ? an explanatory variable to one dependent variable

2. The coefficient of determination

A. ? provides a measure of the variation explained by the regression model

B. ? can guide the selection of additional variables

C. ? can be given as an adjusted figure to provide an unbiased estimate


3. Multicollinearity exists when

A. ? two or more of the independent variables are not correlated

B. ? the dependent variables is highly correlated with two or more of theindependent variables

C. ? two or more of the independent variables are highly correlated

D. ? the dependent variables is not highly correlated with the independent variables

4. The basic test of autocorrelation is provided by

A. ? the coefficient of determination

B. ? the Durbin-Watson test

C. ? the t-test


49/53


5. The multiple regression model will be improved by the

A. ? exclusion of seasonality

B. ? reduced number of variables

C. ? careful specification of variables



50/53

Chapter 17

1. A time series model could include

A. ? Trend

B. ? Seasonal factors

C. ? Cyclical factors

D. ? All of the above

2. A trend is

A. ? copying past figures

B. ? a general direction in which the figures are moving

C. ? being the same as other current figures

D. ? the use of regression

3. the use of regression

A. ? A = T S C R

B. ? A = T S + C + R

C. ? A = T + S + C + R

D. ? A = T S C R

4. The additive model is given by

A. ? A = T S C R

B. ? A = T S + C + R

C. ? A = T + S + C + R


51/53

D. ? A = T S C R

5. The number of periods included in a moving average trend correspond to

A. ? always 4 , 5 or 6

B. ? the maximum possible

C. ? the minimum possible

D. ? none of these

6. The seasonal factor for the additive model is estimated using

A. ? A - T

B. ? T S

C. ? T/A

D. ? A/T

7. Predictions are made by

A. ? averaging the trend and seasonal variation

B. ? extending the trend and adjusting for seasonal factor

C. ? giving the average seasonal variation

D. ? extending for the trend and adjusting for the residual

8. The exponentially weighted moving average

A. ? gives more weight to recent data

B. ? has a sum of weights which equals 1

C. ? is weighted exponentially


52/53

D. ? all of these


53/53

Chapter 18

All Questions - Quantitative Methods

Documents

Transcript of All Questions - Quantitative Methods