When visually inspecting data to confirm the existence of a trend, a scatterplot of the
data with a superimposed linear trend line is advisable to view the series over time
True
Consider the following estimated linear trend model and make a forecast for t=18 and
=11.23 +1.04t
29.95
In reviewing stock growth in Amazon, the linear trend model would be best use for when
an increase in the series happens over time
False
If a time series reverses direction, then a quadratic trend model will allow for the
curvature to be graphed
True
Consider the following quadratic trend model and make a forecast for t=10 and y =
15.84 + 0.98t +0.02t^2
43.44
By combining the validation and the training set, the sample is larger for estimation and
includes the most recent validation set for predictions
True
Which one of the following is not a step in cross-validation with time series?
Use both the training and validation set to re-estimate the preferred model
Consider the following table of the derivations for the MSE, MSA, and MAPE in the
validation set. Based on the results, which model is preferred and why?
Exponential, because the MSE, MAD, and MAPE are consistently lower
When a time series exhibits seasonal variations, the Holt exponential smoothing
method, or double exponential smoothing method, is appropriate to capture the upward
and downward movement of the time series
False
The triple exponential smoothing method uses seasonality variations in the analysis of
the data
True
Which method would be the best fit for a sample containing seasonality, but no trend,
and is further divided into structures depending on the type of seasonality exhibited by
the series?
the Hold-Winters exponential smoothing method
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