Question

1. Define the term skewness and kurtosis. With the aid of a diagram, describe the three types of kurtosis.            4marks
2. Describe the components of a time series and mention their applicability. 4marks

3. The table below relates to the sales of refrigerators by a certain firm in Kenya.

Year production in (000) Year Production in (000)

1996 17    2002 35

1997 20 2003   55

1998 19 2004 50

1999 26 2005 74

2000 24 2006 69

2001 40

Using this data;

1. Fit a straight line trend by the method of ordinary least squares
2. ii. Estimate the number of refrigerators that will be sold in the year 2009.

Answer 1