1. The effect of an unpredictable, rare event will be contained in the _________component.

a) trend

b) cyclical

c) irregular

d) seasonal

2. The overall upward or downward pattern of the data in an annual time series will be contained in the _______component.

a) trend

b) cyclical

c) irregular

d) seasonal

3. The fairly regular fluctuations that occur within each year would be contained in the ______ component.

a) trend

b) cyclical

c) irregular

d) seasonal

4. The annual multiplicative time-series model does not possess _______component.

a) a trend

b) a cyclical

c) a irregular

d) a seasonal\

5. The method of moving average is used

a) to plot a series.

b) to exponentiate a series.

c) to smooth a series.

d) in regression analysis.

6. The method of least squares is used on time-series data for

a) eliminating irregular movements

b) depersonalizing the data

c) obtaining the trend equation

d) exponentially smoothing a series.

7. True or False: A trend is a persistent pattern in annual time –series data that has to be followed for several years.

8. True or False: Given a data set with 15 yearly observations, a 3-year moving average will have fewer observations than a 5-year moving average.

9. True of False: Given a data set with 15 yearly observations, there are only thirteen 3-year moving averages.

10. True of False: A least squares linear trend line is just a simple regression line with the years recoded.

11. True of False: The method of least squares may be used to estimate both linear and curvilinear trends.