Chapter 7: Time Series and Forecasting — Online MCQ Test
STATISTICS · CLASS 12th · Tamil Nadu State Board
Practice Chapter 7: Time Series and Forecasting with a free chapter-wise online MCQ test.
This chapter covers: This chapter explores time series components including secular trend seasonal variations cyclical fluctuations and random movements. Students apply moving averages least squares me....
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Chapter 7: Time Series and Forecasting — Important Questions & Answers
Which of the following represents the long-term general movement of a time series?
- A. Seasonal variation
- B. Secular trend
- C. Cyclical fluctuation
- D. Random movement
Answer: B. Secular trend
Secular trend shows the long-term upward or downward movement in a time series. It reflects the general direction over a long period.
Secular trend shows the long-term upward or downward movement in a time series. It reflects the general direction over a long period.
The method used to smooth short-term fluctuations in a time series is called:
- A. Index number method
- B. Moving average method
- C. Correlation method
- D. Sampling method
Answer: B. Moving average method
The moving average method removes short-term irregularities and reveals the underlying trend more clearly.
The moving average method removes short-term irregularities and reveals the underlying trend more clearly.
A company observes that sales increase every December due to festivals. This is an example of:
- A. Trend
- B. Seasonal variation
- C. Cyclical fluctuation
- D. Random movement
Answer: B. Seasonal variation
The rise in sales every December repeats every year, so it is a seasonal effect.
The rise in sales every December repeats every year, so it is a seasonal effect.
A retailer calculates a 3-year moving average for annual sales. The main purpose is to identify:
- A. Seasonal index
- B. Trend
- C. Random error
- D. Correlation coefficient
Answer: B. Trend
A 3-year moving average smooths short-term fluctuations and highlights the trend in annual sales.
A 3-year moving average smooths short-term fluctuations and highlights the trend in annual sales.
A trend equation is given by Y = 50 + 4X. If X = 3, what is the forecast value of Y?
- A. 54
- B. 62
- C. 64
- D. 56
Answer: C. 64
Substituting X = 3 gives Y = 50 + 4(3) = 62. This is a direct application of the trend equation.
Substituting X = 3 gives Y = 50 + 4(3) = 62. This is a direct application of the trend equation.