When Doing a Bootstrap, If We Use a Sample Size

question 25

Multiple Choice

When doing a bootstrap, if we use a sample size that is too small, how does this bias our results?

• A) The confidence intervals are too narrow and the standard errors are too large.
• B) The confidence intervals are too narrow and the standard errors are too small.
• C) The confidence intervals are too wide and the standard errors are too large.
• D) The confidence intervals are too wide and the standard errors are too small.

Competence in calculating forecast accuracy using measures such as Mean Absolute Deviation (MAD), Mean Square Error (MSE), Mean Absolute Percentage Error (MAPE), and Root Mean Square Error (RMSE).

Understanding of weighted average model and its application in forecasting.

Knowledge of exponential smoothing model, including simple and double exponential smoothing.

Understanding the concept of regression analysis and its use in forecasting.

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Definitions:

Cost Driver

A factor that causes a change in the cost of an activity.

Machine Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiency.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the actual fixed overhead incurred, due to changes in production volume.

Standard Cost

A predetermined cost of manufacturing an item, including direct materials, labor, and overheads, used for budgeting and performance evaluation.