Question 1
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

Question 2
The amount of tea leaves in a can from a particular production line is normally distributed with μ = 110
grams and σ = 25 grams. What is the probability that a randomly selected can will contain between 100
and 110 grams of tea leaves? Answer as a decimal to four places.

Question 3
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.
Select one:

Question 4
The method of moving averages is used

Question 5
Which of the following statements about moving averages is not true?
A) It gives equal weight to all values in the computation.
B) It can be used to smooth a series.
C) It is simpler than the method of exponential smoothing.
D) It gives greater weight to more recent data.

Question 6
The following table contains the number of complaints received in a department store for the first 6
months of last year.
Month
Complaints
January
36
February
45
March
81
April
90
May
108
June
144
6) If a three-month moving average is used to smooth this series, what would be the second calculated
value?
6) _______

Question 7
True or False: The "middle spread," that is the middle 50% of the normal distribution, is equal to one
standard deviation.
Select one:

Question 8
If an economist wishes to determine whether there is evidence that mean family income in a community
equals $50,000,