Question

1.

In a time series, the component that accounts for the general movement over all the years is the

Group of answer choices

trend

cycle

seasonality

random error

2.

If the response variable is dichotomous, one should use

Group of answer choices

stepwise regression

best subsets regression

an interaction term

logistic regression

3.

In a time series, predictions further in the future produce

Group of answer choices

narrower prediction intervals

wider predication intervals

4.

In a time series, moving averages are used to

Group of answer choices

smooth a series

get confidence intervals for predictions

account for cycle

Answer 1

1.

In a time series, the component that accounts for the general movement over all the years is the trend

Trend is the tendency of the time series to increase or decrease over different periods of Time while Seasonality is an annual concept

2.

If the response variable is dichotomous, one should use logistic regression

Whenever the Response Variable is Categorical or dichotomous we use Logistic Regression and whenever response variable is continuous we use Regression.

3.

In a time series, predictions further in the future produce wider predication intervals

Prediction intervals must account for both the uncertainty in knowing the value of the population mean, plus data scatter. So a prediction interval is always wider

4.

In a time series, moving averages are used to smooth a series

Moving averages have the property to reduce the amount of variation present in the data. Hence, the smoothen the data.