Question 1

Which of the following is not present in a time series?

Accepted Answer

A)  seasonality
B)  operational variations
C)  trend
D)  cycles
E)  random variationsF) A) and C)
G) B) and C)

Question 2

Use exponential smoothing with trend adjustment to forecast deliveries for period 10.Let alpha = 0.4,beta = 0.2,and let the initial trend value be 4 and the initial forecast be 200.

Accepted Answer

The answer of Use exponential smoothing with trend adjustment to...

Question 3

Short-range forecasts tends to ________ longer-range forecasts.

Accepted Answer

A)  be less accurate than
B)  be more accurate than
C)  have about the same level of accuracy as
D)  employ the same methodologies as
E)  deal with more comprehensive issues thanF) B) and C)
G) A) and E)

Question 4

The last four weekly values of sales were 80,100,105,and 90 units.The last four forecasts were 60,80,95,and 75 units.These forecasts illustrate:

Accepted Answer

A)  qualitative methods.
B)  adaptive smoothing.
C)  slope.
D)  bias.
E)  trend projection.F) D) and E)
G) A) and B)

Question 5

Cycles and random variations are both components of time series.

Accepted Answer

A) True 
 B)False

Question 6

In time series,which of the following cannot be predicted?

Accepted Answer

A)  large increases in demand
B)  cycles
C)  seasonal fluctuations
D)  random variations
E)  large decreases in demandF) A) and B)
G) All of the above

Question 7

If a barbershop operator noted that Tuesday's business was typically twice as heavy as Wednesday's,and that Friday's business was typically the busiest of the week,business at the barbershop is subject to ________.

Accepted Answer

seasonal v...

Question 8

Forecasts used for new product planning,capital expenditures,facility location or expansion,and R&D typically utilize a:

Accepted Answer

A)  short-range time horizon.
B)  medium-range time horizon.
C)  long-range time horizon.
D)  naive method,because there is no data history.
E)  trend extrapolation.F) B) and D)
G) A) and D)

Question 9

The two general approaches to forecasting are:

Accepted Answer

A)  qualitative and quantitative.
B)  mathematical and statistical.
C)  judgmental and qualitative.
D)  historical and associative.
E)  judgmental and associative.F) C) and D)
G) A) and E)

Question 10

Which of the following is TRUE regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

Accepted Answer

A)  One constant is positive,while the other is negative.
B)  They are called MAD and cumulative error.
C)  Alpha is always smaller than beta.
D)  One constant smoothes the regression intercept,whereas the other smoothes the regression slope.
E)  Their values are determined independently.F) All of the above
G) C) and D)

Question 11

What are the three realities of forecasting that companies face?

Accepted Answer

First,outside factors that we cannot pre...

Question 12

Describe the three forecasting time horizons and their use.

Accepted Answer

Forecasting time horizons are: short ran...

Question 13

A forecasting method has produced the following over the past five months.What is the mean absolute deviation?

Accepted Answer

A)  -0.2
B)  -1.0
C)  0.0
D)  1.2
E)  8.6F) All of the above
G) A) and B)

Question 14

________ forecasts employ one or more mathematical models that rely on historical data and/or associative variables to forecast demand.

Accepted Answer

The answer of ________ forecasts employ one or more mathematical...

Question 15

The fundamental difference between cycles and seasonality is the:

Accepted Answer

A)  duration of the repeating patterns.
B)  magnitude of the variation.
C)  ability to attribute the pattern to a cause.
D)  all of the above
E)  none of the aboveF) C) and E)
G) C) and D)

Question 16

The three major types of forecasts used by organizations in planning future operations are:

Accepted Answer

A)  strategic,tactical,and operational.
B)  economic,technological,and demand.
C)  exponential smoothing,Delphi,and regression.
D)  causal,time-series,and seasonal.
E)  departmental,organizational,and territorial.F) B) and E)
G) A) and D)

Question 17

Given the following data,calculate the three-year moving averages for years 4 through 10.

Accepted Answer

The answer of Given the following data,calculate the three-year moving...

Question 18

Simple ________ forecasts only work well if we can assume that market demands will stay fairly steady over time.

Accepted Answer

The answer of Simple ________ forecasts only work well if...

Question 19

A skeptical manager asks what short-range forecasts can be used for.Give her three possible uses/purposes.

Accepted Answer

Any three of: planning purchas...

Question 20

The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.

Accepted Answer

A) True 
 B)False

Exam 4: Forecasting

________ forecasts employ one or more mathematical models that rely on historical data and/or associative variables to forecast demand.

Correct AnswerverifiedShow Answer

The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.

Correct AnswerverifiedShow Answer

A skeptical manager asks what short-range forecasts can be used for.Give her three possible uses/purposes.

Correct AnswerverifiedAny three of: planning purchas...View AnswerShow Answer

Cycles and random variations are both components of time series.

Correct AnswerverifiedShow Answer

Forecasts used for new product planning,capital expenditures,facility location or expansion,and R&D typically utilize a:

Correct AnswerverifiedShow Answer

In time series,which of the following cannot be predicted?

Correct AnswerverifiedShow Answer

The last four weekly values of sales were 80,100,105,and 90 units.The last four forecasts were 60,80,95,and 75 units.These forecasts illustrate:

Correct AnswerverifiedShow Answer

A forecasting method has produced the following over the past five months.What is the mean absolute deviation?

Correct AnswerverifiedShow Answer

Simple ________ forecasts only work well if we can assume that market demands will stay fairly steady over time.

Correct AnswerverifiedShow Answer

Describe the three forecasting time horizons and their use.

Correct AnswerverifiedForecasting time horizons are: short ran...View AnswerShow Answer

The two general approaches to forecasting are:

Correct AnswerverifiedShow Answer

Given the following data,calculate the three-year moving averages for years 4 through 10.

Correct AnswerverifiedShow Answer

Short-range forecasts tends to ________ longer-range forecasts.

Correct AnswerverifiedShow Answer

Which of the following is TRUE regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

Correct AnswerverifiedShow Answer

The three major types of forecasts used by organizations in planning future operations are:

Correct AnswerverifiedShow Answer

What are the three realities of forecasting that companies face?

Correct AnswerverifiedFirst,outside factors that we cannot pre...View AnswerShow Answer

Which of the following is not present in a time series?

Correct AnswerverifiedShow Answer

Use exponential smoothing with trend adjustment to forecast deliveries for period 10.Let alpha = 0.4,beta = 0.2,and let the initial trend value be 4 and the initial forecast be 200.

Correct AnswerverifiedShow Answer

If a barbershop operator noted that Tuesday's business was typically twice as heavy as Wednesday's,and that Friday's business was typically the busiest of the week,business at the barbershop is subject to ________.

Correct Answerverifiedseasonal v...View AnswerShow Answer

The fundamental difference between cycles and seasonality is the:

Correct AnswerverifiedShow Answer

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Any three of: planning purchas...
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Forecasting time horizons are: short ran...
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First,outside factors that we cannot pre...
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seasonal v...
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