ECAP790 Unit 10: Time Series - MCQ Practice | MCA - ODL

1 $What is a time series?$

Introduction to time series Easy

A.

Data arranged in alphabetical order

B.

Data grouped without reference to time

C.

Data recorded in chronological order

D.

Data collected from one location only

2 $Which of the following is an example of time-series data?$

Introduction to time series Easy

A.

Colors of cars in a parking lot

B.

Names of employees in a company

C.

Monthly sales of a store

D.

Heights of students in a class

3 $In a time series, the independent variable is usually:$

Introduction to time series Easy

A.

Category

B.

Frequency

C.

Time

D.

Location

4 $Which graph is commonly used to display a time series?$

Introduction to time series Easy

A.

Pictogram showing every individual observation with a separate symbol

B.

Line graph

C.

Pie chart

D.

Venn diagram

5 $What is a major purpose of time-series analysis?$

Introduction to time series Easy

A.

To calculate only the total number of observations

B.

To arrange words alphabetically

C.

To study changes over time

D.

To classify objects by color

6 $Which set of observations is recorded at regular time intervals?$

Introduction to time series Easy

A.

Student roll numbers

B.

Daily temperatures

C.

Types of soil found at several unrelated locations during one survey

D.

Book titles

7 $Which component represents the long-term general movement of a time series?$

Components of time series Easy

A.

Trend

B.

Seasonal variation

C.

Irregular variation

D.

Cyclical variation

8 $Which component consists of patterns that repeat within one year?$

Components of time series Easy

A.

Cyclical variation

B.

Seasonal variation

C.

Irregular variation caused by completely unexpected and nonrecurring events

D.

Secular trend

9 $An increase in ice-cream sales every summer is an example of:$

Components of time series Easy

A.

Irregular variation

B.

Secular trend

C.

Seasonal variation

D.

Cyclical variation

10 $Which variation is associated with long-term business expansions and recessions?$

Components of time series Easy

A.

Irregular variation

B.

Seasonal variation

C.

Cyclical variation

D.

A constant movement that repeats every week throughout a single year

11 $A sudden fall in production due to an earthquake is classified as:$

Components of time series Easy

A.

Irregular variation

B.

Seasonal variation

C.

Cyclical variation

D.

Secular trend

12 $Which list contains the four standard components of a time series?$

Components of time series Easy

A.

Mean, median, mode, range

B.

Trend, seasonal, cyclical, irregular

C.

Trend, frequency, probability, correlation, and regression

D.

Primary, secondary, discrete, continuous

13 $In the additive time-series model, an observation is represented by:$

Components of time series Easy

A.

B.

C.

D.

14 $In the multiplicative time-series model, the components are:$

Components of time series Easy

A.

Multiplied together

B.

Added together

C.

Converted into frequencies and then arranged into class intervals

D.

Subtracted in order

15 $Which method estimates trend by drawing a smooth line through plotted observations?$

Measurement of variations of time series Easy

A.

Freehand curve method

B.

Semi-average method

C.

Ratio-to-trend method using seasonal percentages for each period

D.

Moving average method

16 $Which trend-measurement method divides a time series into two equal parts?$

Measurement of variations of time series Easy

A.

Moving average method

B.

Semi-average method

C.

Link-relative method

D.

Least-squares method

17 $What is the main purpose of a moving average?$

Measurement of variations of time series Easy

A.

To increase seasonal variation

B.

To create random fluctuations

C.

To replace every observation with the largest value in the entire series

D.

To smooth short-term fluctuations

18 $What is the three-period moving average of,, and ?$

Measurement of variations of time series Easy

A.

B.

C.

D.

19 $Which method fits a trend line by minimizing the sum of squared errors?$

Measurement of variations of time series Easy

A.

Least-squares method

B.

Semi-average method

C.

A seasonal method based only on comparing the highest annual values

D.

Freehand curve method

20 $A seasonal index of indicates that the value is typically:$

Measurement of variations of time series Easy

A.

above the average

B.

below the average

C.

below the average

D.

Exactly equal to the average

21 $A company records its monthly sales for five consecutive years. Why is this data considered a time series?$

Introduction to time series Medium

A.

The observations are arranged in chronological order

B.

The observations are collected from several companies

C.

The observations have equal arithmetic means

D.

The observations contain only numerical variables

22 $Which data set is most suitable for time-series analysis?$

Introduction to time series Medium

A.

Annual incomes of 100 households in one city

B.

Test scores of four classes in one semester

C.

Daily closing prices of one stock for a year

D.

Heights of 200 students measured on one day

23 $Quarterly revenue was recorded as,,, and million. What does the time-series value million represent?$

Introduction to time series Medium

A.

Difference between two consecutive quarters

B.

Revenue recorded during the third quarter

C.

Average revenue across all four quarters

D.

Revenue forecast for the fourth quarter

24 $A retailer wants to forecast demand that changes noticeably from month to month. Which recording frequency is most appropriate?$

Introduction to time series Medium

A.

Five-year observations

B.

One cross-sectional observation

C.

Decennial observations

D.

Monthly observations

25 $Which statement best distinguishes time-series data from cross-sectional data?$

Introduction to time series Medium

A.

Time-series data compare many units at one fixed time

B.

Time-series data must always be recorded every day

C.

Time-series data track a variable across successive times

D.

Time-series data cannot contain nonperiodic fluctuations

26 $Ice-cream sales rise each summer and fall each winter in a broadly repeated pattern. Which component primarily explains this movement?$

Components of time series Medium

A.

Cyclical variation

B.

Seasonal variation

C.

Secular trend

D.

Irregular variation

27 $A country's real output alternates between expansion and recession over periods lasting several years. Which time-series component does this illustrate?$

Components of time series Medium

A.

Cyclical variation

B.

Irregular variation

C.

Seasonal variation

D.

Daily variation

28 $A factory's production drops suddenly because of an unexpected earthquake. Which component best represents this change?$

Components of time series Medium

A.

Seasonal variation

B.

Cyclical variation

C.

Secular trend

D.

Irregular variation

29 $A city's population increases steadily over three decades despite short-term fluctuations. Which component is represented by the sustained increase?$

Components of time series Medium

A.

Cyclical variation

B.

Irregular variation

C.

Secular trend

D.

Seasonal variation

30 $Under the additive model of a time series, which equation represents an observation ?$

Components of time series Medium

A.

B.

C.

D.

31 $A multiplicative model is generally more appropriate when seasonal fluctuations:$

Components of time series Medium

A.

Occur only once during the observed period

B.

Remain constant in magnitude at every series level

C.

Increase in magnitude as the series level rises

D.

Disappear whenever the trend becomes positive

32 $In an additive model,,,, and . What is the irregular component ?$

Components of time series Medium

A.

B.

C.

D.

33 $Annual sales for four consecutive years are,,, and units. Using the semi-average method, what are the two semi-averages?$

Measurement of variations of time series Medium

A.

and

B.

and

C.

and

D.

and

34 $For observations,, and, what is the centered three-period moving average assigned to the middle period?$

Measurement of variations of time series Medium

A.

B.

C.

D.

35 $Why is a four-quarter moving average usually centered before it is aligned with quarterly observations?$

Measurement of variations of time series Medium

A.

Its computation excludes the seasonal component

B.

Its values always contain strong irregular variation

C.

Its average initially falls between two quarters

D.

Its total must equal four before interpretation

36 $A fitted linear trend is, where corresponds to 2024. What is the trend estimate for 2027?$

Measurement of variations of time series Medium

A.

B.

C.

D.

37 $When time values are coded so that, which formula gives the least-squares estimate of the intercept in ?$

Measurement of variations of time series Medium

A.

B.

C.

D.

38 $In the ratio-to-moving-average method, an observed quarterly value is and its centered moving average is . What is the seasonal relative?$

Measurement of variations of time series Medium

A.

B.

C.

D.

39 $The unadjusted quarterly seasonal indices are,,, and . Is an adjustment required before using them?$

Measurement of variations of time series Medium

A.

No, because their sum is

B.

No, because their average is

C.

Yes, because their sum must be

D.

Yes, because each index must equal

40 $A multiplicative time series has an observed value of and a seasonal index of . What is the seasonally adjusted value?$

Measurement of variations of time series Medium

A.

B.

C.

D.

41 $Two series contain exactly the same observed values but in different chronological orders. Which statistic can differ between them solely because of the reordering?$

Introduction to time series Hard

A.

The sample variance

B.

The sample mean

C.

The sample median

D.

The lag-1 autocorrelation

42 $A forecasting model is evaluated by randomly assigning observations from a strongly autocorrelated time series to training and test sets. What is the principal methodological problem?$

Introduction to time series Hard

A.

Random assignment eliminates the seasonal component

B.

Temporal dependence can leak future information into training

C.

The fitted model becomes algebraically unidentified

D.

The test set necessarily has a larger variance

43 $A monthly series is, where is a deterministic monthly effect and . If each year's value is formed by averaging its 12 months, what series results?$

Introduction to time series Hard

A.

A seasonal annual series with period

B.

A constant annual series equal to

C.

A constant annual series equal to

D.

An annual series with an increasing trend

44 $Which pair of constraints most directly makes the seasonal component identifiable in standard additive and multiplicative decompositions, respectively?$

Components of time series Hard

A.

and

B.

and

C.

and

D.

and

45 $Under the additive model, suppose . At,,, and . What is ?$

Components of time series Hard

A.

B.

C.

D.

46 $For the multiplicative model, an observation has,,, and . What is the irregular factor?$

Components of time series Hard

A.

B.

C.

D.

47 $The seasonal fluctuations of a sales series are approximately units when its level is and units when its level is . Which decomposition is most appropriate before further diagnostics?$

Components of time series Hard

A.

An additive model, because the relative amplitude decreases

B.

A multiplicative model, because the relative amplitude is stable

C.

A trend-only model, because seasonality is level-dependent

D.

An additive model, because the absolute amplitude increases

48 $Suppose a quarterly additive series is, where repeats every four quarters. Ignoring irregular variation, what is ?$

Components of time series Hard

A.

B.

C.

D.

49 $A series displays recurrent expansions and contractions lasting between three and seven years, with no fixed duration or calendar timing. Which component best describes this behavior?$

Components of time series Hard

A.

Secular trend

B.

Cyclical variation

C.

Seasonal variation

D.

Irregular variation

50 $If with all factors positive, which transformation converts the decomposition into an additive form without approximation?$

Components of time series Hard

A.

B.

C.

D.

51 $For quarterly observations, what is the centered four-quarter moving average aligned with the third observation?$