(15) 7. (TRUE, FALSE) Exponential Smoothing forecasting method is a causal forecasting method.

3. A) Using only the scatterplot, do you think a linear model does a good job of describing the relationship? Explain why or why not. The linear model (does/does not) do a good job of describing the relationship because the scatterplot is approximately (linear/nonlinear).   B) Using only the residual plot, what can you determine about whether the basic assumptions of the linear regression model are met? There (is/is not) an obvious pattern in the residual plot, which would indicate that the basic assumptions (are/are not) met.   C) Using only the normal probability plot and boxplot of the residuals, what can you determine about whether the basic assumptions of the linear regression model are met? The normal probability plot of the residuals is roughly (linear/nonlinear),  so the assumption that the distribution of e is approximately normal (is/ is not) reasonable. The boxplot of the residuals (nontains/ does not contain) an outlier, so there  (is/ is no)  doubt regarding the assumption…

Match the description on the right with the correct term on the left regarding types of forecasting methods. 1. Econometric, input-output, and simulation are techniques used with this type of forecasting method, which assumes that the variable to be forecasted is related to one or more intrinsic variables. Causal Methods 2. The Delphi technique, market surveys, and life-cycles analogy are techniques used with this type of forecasting method, which relies on the judgment of individuals or Qualitative Methods Time-Series Methods groups. 3. Moving averages and exponential smoothing are techniques used with this type of forecasting method, which assumes that time is the only important variable.

Training Dept. of Nimrod Inc wants to develop a regression-based compensation model (compensation in $ per year, Comp) for its mid-level managers to encourage performance, loyalty, and continuing education based on three variables. ▪ Business unit-profitability (Profit per year in $). ▪ Working experiences in Nimrod Inc (Years). ▪ Whether or not a manager has a graduate degree (Grads). If a manager has a graduate degree equals 1, 0 otherwise. Table Attached Question: Use the (full) model to determine the compensation for a manager who has been working for twelve years in a company, no graduate degree, and Nimrod Inc profit of $8.000.000 last year.