Business statistics 1How is the trend eliminated in the rati

Business statistics

1.How is the trend eliminated in the ratio-to-moving average procedure?

2. Why take the seasonality out of a time series?

3. Does a index of 103 indicate above or below average?

4. What is autocorrealtion?

5. Be able to read and interpret a short time series using an index.

6. What is done with seasonal indexes?

7. Be able to read and interpret a short time series using an index.

8. Hypothesis tests for nominal and ordinal merasurement are?

9. Chi-square test?

10. Sum of differences in expected and observed frequencies

Solution

1)It is harder to see a trend in a noisy time series thats why it is eliminated in the ratio-to-moving average procedure.

2)Unlike the trend and cyclical components, seasonal components, theoretically, happen with similar magnitude during the same time period each year. The seasonal components of a series are sometimes considered to be uninteresting and to hinder the interpretation of a series. Removing the seasonal component directs focus on other components

4)Autocorrelation is the correlation between the elements of a series and others from the same series separated from them by a given interval.

6)A seasonal index is used when forecasting products with seasonal demand patterns.

9)A chi-squared test, also referred to as