Q1. An overall tendency of rise or fall in a time series is called
(a) seasonal variation
(b) secular trend
(c) cyclical variation
(d) irregular variation
Correct Answer (b) secular trend
Q2. The component having primary use for short-term forecasting is
(a) cyclical variation
(b) irregular variation
(c) seasonal variation
(d) trend
Correct Answer (c) seasonal variation
Q3. Cyclical movements are due to
(a) ratio to trend
(b) seasonal
(c) trend
(d) trade cycle
Correct Answer (d) trade cycle
Q4. Data on annual turnover of a company over a period of ten years can be represented by a
(a) a time series
(b) an index number
(c) a parameter
(d) a statistic
Correct Answer (a) a time series
Q5. The component having primary use for long term forecasting is
(a) cyclical variation
(b) irregular variation
(c) seasonal variation
(d) trend
Correct Answer (d) trend
Q6. A time series is a set of data recorded
(a) periodically
(b) at equal time intervals
(c) at successive points of time
(d) all the above
Correct Answer (d) all the above
Q7. A time series consists of
(a) two components
(b) three components
(c) four components
(d) five components
Correct Answer (c) four components
Q8. Irregular variation in a time series can be due to
(a) trend variations
(b) seasonal variations
(c) cyclical variations
(d) unpredictable causes
Correct Answer (d) unpredictable causes
Q9. The terms prosperity, recession, depression and recovery are in particular attached to
(a) secular trend
(b) seasonal fluctuation
(c) cyclical movements
(d) irregular variation
Correct Answer (c) cyclical movements
Q10. An additive model of time series with components, T, S, C and I is
(a) Y = × S × C × I
(b) Y = T + S + C + I
(c) Y = T × S + C × I
(d) Y = T × S × C + I
Correct Answer (b) Y = T + S + C + I
Q11. A decline in the sale of ice cream during November to March is associated with
(a) seasonal variation
(b) cyclical variation
(c) irregular variation
(d) secular trend
Correct Answer (a) seasonal variation
Q12. Business forecasts are made on the basis of
(a) future data
(b) past data
(c) tax regulations
(d) Government policies
Correct Answer (b) past data
Q13. The four components of time series in a multiplicative model are
(a) independent
(b) interdependent
(c) constant
(d) additive
Correct Answer (b) interdependent
Q14. In the least square theory the sum of squares of residuals is
(a) zero
(b) minimum
(c) constant
(d) maximum
Correct Answer (b) minimum
Q15. No statistical techniques for measuring or isolating —– is available.
(a) cyclical variation
(b) seasonal variation
(c) erratic fluctuations
(d) secular trend
Correct Answer (c) erratic fluctuations
