Question

In: Operations Management

The regression line minimizes the sum of the squared errors True o false F significance is...

The regression line minimizes the sum of the squared errors

True o false


F significance is used to determine how fit is the model

True o false

The best model is a statistically significant model with a high r-square and few variables

True o false


The exponential smoothing with trend model uses two smoothing constants, one constant works as in the exponential smoothing model and the other adjusts the line for presence of a trend
True o false


An exponential forecasting method is a time series forecasting method
True o false

Solutions

Expert Solution

Q.The regression line minimizes the sum of the squared errors

True o false

Ans True: “The least square method calculates the best fit line for the observed data by minimizing the sum of squares of the vertical deviations from each data point to the line.”


Q. F significance is used to determine how fit is the model

True o false

Ans True: F test, R square, RMSE (Root mean square error) are used in OLS (Ordinary least square) to evaluate model fit.

Q. “The best model is a statistically significant model with a high r-square and few variables”

True o false

Ans :True: R square ranges from 0 to 1, 1 indicates perfect prediction and zero indicates that the proposed model does not improve mean over prediction.


Q. The exponential smoothing with trend model uses two smoothing constants, one constant works as in the exponential smoothing model and the other adjusts the line for presence of a trend
True o false

Ans True: Also know as trend corrected exponential smoothing


Q. An exponential forecasting method is a time series forecasting method
True o false

Ans: True: Yes, exponential forecasting method is a time series forecasting method, It is suitable if time series has no trends or seasonal pattern.


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