### Question Description

4. In #3, which method (if any) is most appropriate? (4)

a. Exponential smoothing.

b. Regression.

c. Regression with seasonal indices.

d. None of the above.

5. In #3, which of the following is most appropriate regarding sales? (4)

a. We should use all of the data in our model.

b. We should use only periods 5-16 in our model.

c. We should use only periods 9-16 in our model.

d. We should use only periods 13-16 in our model.

e. We should use only periods 1-12 in our model.

6. Refer to the Excel output on the final pages. Here, we are tracking the number of orders

placed by week for a 20-week period. The first set of output is for an exponential

smoothing model with

α

= 0.25. The second set of output is for a regression. Which of

the following is most appropriate? (3)

a. The exponential smoothing model is most appropriate.

b. The regression is most appropriate.

c. Another model would be more appropriate.

### Unformatted Attachment Preview

Purchase answer to see full attachment

## Final Answer

Attached.

QM 662 Exam II

1. The table below features three forecasting models used on the same set of data.

Model 1

Model 2

Model 3

Type

Exponential

Smoothing

Regression

Seasonal & Trend

MSE

8755.3

4876.2

5945.8

Based solely on the information in this output, which of the following is the best answer? (5)

a.

b.

c.

d.

e.

The data set contains no trend or seasonality.

The data set contains trend but no seasonality.

The data set contains seasonality but no trend.

The data set probably contains cyclicality.

The data set contains both trend and seasonality.

2. In a forecasting application for 20 time periods, there are 10 negative errors and 10

positive errors. This indicates the model is performing well. (2)

a. True

b. False

3. Refer to the following graph:...

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors