MA07 Forecasting

What is the key difference between a FORECAST vs a BUDGET?

• A budget is an estimate of what will happen in the future.

• A forecast is a plan of the utilization of the company's resources in the future.

• A forecast is a detailed representation of the company's plan for the future.

• A budget is a plan of the utilisation of the company's resources in the future.

The key difference between the excel function FORECAST and REGRESSION function is

• FORECAST Function can have more than one independent variables.

• FORECAST Function can have more than one dependent variables.

• REGRESSION function can have more than one independent variables.

• REGRESSION function can have more than one dependent variables.

In the formula Y = m₁ X₁ + m₂ X₂ + C,

m₁ and m₂ are termed as ______

• independent variables

• dependent variables

• coefficients

• intercept

In the formula Y = m₁ X₁ + m₂ X₂ + C,

X₁ and X₂ are termed as ______

• Independent Variables

• Dependent Variables

• Intercept

• Coefficients

Regression Formula:

Module Grades = (m₁ x Study Time) - (m₂ x Social Media time) + C

Which of the following statement is true of the above Regression formula?

• Module Grades is the Independent Variable.

• Study Time and Social Media time are the Dependent Variables

• The higher the Social Media time the lower the Module Grade.

• If Study Time and Social Media Time are 0, then Module Grade is 0.

The Hong Kong government has predicted that in the next month, there's a possibility of 30% of Grade 1 typhoon, and 60% of a tropical storm.

What is the probability that it will be a light rain?

• 10%

• 100%

• 60%

• 30%

In a Regression Analysis, R² = 0.97 refers to ______.

• the observed dependent variables are extremely scattered around the regression equation

• the observed independent variables are closely aligned to the regression equation.

• the observed independent variables are extremely scattered around the regression equation.

• the observed independent variables are a perfect fit to the regression equation.