BA Chapter8-9 quiz/review

Use the spreadsheet to answer question. 

Determine the forecast for the year 1950 using simple average method.

104.276

Categorical variables that have been coded are called ____.

dummy variables

How many additional dummy variables are required if a categorical variable has 4 levels?

3

Identify the formula used to calculate the root mean square error over a range of forecasted values, if the actual value of the time series at time t and the forecast value for time t are denoted by AT and FT respectably

Which of the following is NOT an assumption of linear regression?

Multicollinearity

While checking for linearity by examining the residual plot, the residuals must:

be randomly scattered