Exam 1 - QA
Model variables can be controllable or uncontrollable.
true
A mathematical model shows the relationship between quantifiable and non-quantifiable information.
False
All problems can be solved by considering only the quantitative issues.
False
Descriptive Analytics is aimed at forecasting future outcomes based on patterns in the past data.
False
Four components of time series are trend, moving average, exponential smoothing, and seasonality.
False
Mean absolute deviation (MAD) is simply the sum of forecast errors.
False
The Quantitative Analysis Approach consists of six steps.
False
The multiple regression model includes several intercept terms.
False
The null hypothesis in the F-test is that there is a linear relationship between the X and Y variables.
False
An advantage of exponential smoothing over a simple moving average is that exponential smoothing requires one to retain less data.
True
An exponential forecasting method is a time series forecasting method.
True
Business Analytics is a data-driven approach to decision making that allows companies to make better decisions.
True
Errors are also called residuals.
True
Multicollinearity exists when a variable is correlated to other variables.
True
One problem in using a quantitative model is that the necessary data may be unavailable.
True
Scatter diagrams can be useful in spotting trends or cycles in data over time.
True
The best model is a statistically significant model with a high r-square and few variables.
True
The coefficient of determination gives the proportion of the variability in the dependent variable that is explained by the regression equation.
True
The fewer the periods over which one takes a moving average, the more accurately the resulting forecast mirrors the actual data of the most recent time periods.
True
The most common quantitative causal model is regression analysis.
True
The multiple regression model includes multiple slope coefficients.
True
The naïve forecast for the next period is the actual value observed in the current period.
True
The trend component of a time series captures whether the level of the variable of interest is generally increasing or decreasing over time.
True
Time series models extrapolate historical data from the variable of interest.
True
There is no relationship between variables unless the data points lie in a straight line.
False
Trying various approaches and picking the one resulting in the best decision is called incomplete enumeration.
False
A sensitivity analysis allows a manager to answer the "what if" questions.
True
If multicollinearity exists, then individual interpretation of the variables is questionable, but the overall model is still good for prediction purposes.
True
In order for a break-even quantity to exist in the presence of positive fixed costs, sales price must exceed variable cost per unit.
True
The correlation coefficient has values between −1 and +1.
True