Question 1

The last seven weeks of demand at a new car dealer are shown below.Use a three-period weighted-moving average forecast to determine a forecast for the 8th week using weights of 3,2,and 1 (where the most recent week receives the highest weight).(Round all forecasts to the nearest whole unit. )Calculate the MAD for this forecast (covering all weeks in which error comparisons can be made).What does the MAD indicate?
Week Sales
1 25
2 30
3 27
4 31
5 27
6 29
7 30

Accepted Answer

Week Sales 3WMA |error|
1 25
2...

Question 2

A forecast with a time horizon of about 3 months to 3 years is typically called a:

Accepted Answer

A)  long-range forecast.
B)  medium-range forecast.
C)  short-range forecast.
D)  weather forecast.
E)  strategic forecast.

Question 3

If Brandon Edward were working to develop a forecast using a moving averages approach,but he noticed a detectable trend in the historical data,he should:

Accepted Answer

A)  use weights to place more emphasis on recent data.
B)  use weights to minimize the importance of the trend.
C)  change to an associative multiple regression approach.
D)  use a simple moving average.
E)  change to a qualitative approach.

Question 4

Identify the seven steps involved in forecasting.

Accepted Answer

1.Determine the use of the forecast.
2.S...

Question 5

Which of the following is NOT a step in the forecasting process?

Accepted Answer

A)  Determine the use of the forecast.
B)  Eliminate any assumptions.
C)  Determine the time horizon of the forecast.
D)  Select the forecasting model.
E)  Validate and implement the results.

Question 6

Describe three popular measures of forecast accuracy.

Accepted Answer

Measures of forecast accuracy include: (...

Question 7

The larger the number of periods in the simple moving average forecasting method,the greater the method's responsiveness to changes in demand.

Accepted Answer

A) True 
 B)False

Question 8

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 demand

Question 9

Which of the following uses three types of participants: decision makers,staff personnel,and respondents?

Accepted Answer

A)  jury of executive opinion
B)  sales force composite
C)  Delphi method
D)  associative models
E)  time series

Question 10

Which of the following statements comparing exponential smoothing to the weighted moving average technique is TRUE?

Accepted Answer

A)  Exponential smoothing is more easily used in combination with the Delphi method.
B)  More emphasis can be placed on recent values using the weighted moving average.
C)  Exponential smoothing is considerably more difficult to implement on a computer.
D)  Exponential smoothing typically requires less record keeping of past data.
E)  Exponential smoothing allows one to develop forecasts for multiple periods,whereas the weighted moving average technique does not.

Question 11

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.

Question 12

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Accepted Answer

A)  0
B)  1 divided by the number of periods
C)  0.5
D)  1.0
E)  cannot be determined

Question 13

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period.

Accepted Answer

A) True 
 B)False

Question 14

Identify four quantitative forecasting methods.

Accepted Answer

The list includes naive,moving...

Question 15

When one constant is used to smooth the forecast average and a second constant is used to smooth the trend,the forecasting method is ________.

Accepted Answer

exponential smoothing with tre...

Question 16

A management analyst is using exponential smoothing to predict merchandise returns at an upscale branch of a department store chain.Given an actual number of returns of 154 items in the most recent period completed,a forecast of 172 items for that period,and a smoothing constant of 0.3,what is the forecast for the next period? How would the forecast be changed if the smoothing constant were 0.6? Explain the difference in terms of alpha and responsiveness.

Accepted Answer

166.6;161.2 The larger the smo...

Question 17

A fundamental distinction between trend projection and linear regression is that:

Accepted Answer

A)  trend projection uses least squares while linear regression does not.
B)  only linear regression can have a negative slope.
C)  in trend projection the independent variable is time;in linear regression the independent variable need not be time,but can be any variable with explanatory power.
D)  trend projection can be a function of several variables,while linear regression can only be a function of one variable.
E)  trend projection uses two smoothing constants,not just one.

Question 18

Name and discuss three qualitative forecasting methods.

Accepted Answer

Qualitative forecasting methods include:...

Question 19

The tracking signal is the:

Accepted Answer

A)  standard error of the estimate.
B)  absolute deviation of the last period's forecast.
C)  MAD.
D)  ratio of cumulative error / MAD.
E)  MAPE.

Question 20

Most forecasting techniques assume that there is some underlying stability in the system.

Accepted Answer

A) True 
 B)False

Exam 4: Forecasting

Identify the seven steps involved in forecasting.

Correct Answer
verified
1.Determine the use of the forecast.
2.S...
View Answer

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

Correct Answer
verified

Most forecasting techniques assume that there is some underlying stability in the system.

Correct Answer
verified

Which of the following uses three types of participants: decision makers,staff personnel,and respondents?

Correct Answer
verified

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Correct Answer
verified

Name and discuss three qualitative forecasting methods.

Correct Answer
verified
Qualitative forecasting methods include:...
View Answer

Correct Answer
verified
166.6;161.2 The larger the smo...
View Answer

Identify four quantitative forecasting methods.

Correct Answer
verified
The list includes naive,moving...
View Answer

A fundamental distinction between trend projection and linear regression is that:

Correct Answer
verified

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

Correct Answer
verified

Which of the following is NOT a step in the forecasting process?

Correct Answer
verified

A forecast with a time horizon of about 3 months to 3 years is typically called a:

Correct Answer
verified

Describe three popular measures of forecast accuracy.

Correct Answer
verified
Measures of forecast accuracy include: (...
View Answer

Correct Answer
verified
Week Sales 3WMA |error|
1 25
2...
View Answer

Which of the following statements comparing exponential smoothing to the weighted moving average technique is TRUE?

Correct Answer
verified

The tracking signal is the:

Correct Answer
verified

When one constant is used to smooth the forecast average and a second constant is used to smooth the trend,the forecasting method is ________.

Correct Answer
verified
exponential smoothing with tre...
View Answer

The larger the number of periods in the simple moving average forecasting method,the greater the method's responsiveness to changes in demand.

Correct Answer
verified

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period.

Correct Answer
verified

If Brandon Edward were working to develop a forecast using a moving averages approach,but he noticed a detectable trend in the historical data,he should:

Correct Answer
verified

Exam 4: Forecasting

Identify the seven steps involved in forecasting.

Correct Answerverified1.Determine the use of the forecast.2.S...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Most forecasting techniques assume that there is some underlying stability in the system.

Correct AnswerverifiedShow Answer

Which of the following uses three types of participants: decision makers,staff personnel,and respondents?

Correct AnswerverifiedShow Answer

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Correct AnswerverifiedShow Answer

Name and discuss three qualitative forecasting methods.

Correct AnswerverifiedQualitative forecasting methods include:...View AnswerShow Answer

Correct Answerverified166.6;161.2 The larger the smo...View AnswerShow Answer

Identify four quantitative forecasting methods.

Correct AnswerverifiedThe list includes naive,moving...View AnswerShow Answer

A fundamental distinction between trend projection and linear regression is that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is NOT a step in the forecasting process?

Correct AnswerverifiedShow Answer

A forecast with a time horizon of about 3 months to 3 years is typically called a:

Correct AnswerverifiedShow Answer

Describe three popular measures of forecast accuracy.

Correct AnswerverifiedMeasures of forecast accuracy include: (...View AnswerShow Answer

Correct AnswerverifiedWeek Sales 3WMA |error|1 252...View AnswerShow Answer

Which of the following statements comparing exponential smoothing to the weighted moving average technique is TRUE?

Correct AnswerverifiedShow Answer

The tracking signal is the:

Correct AnswerverifiedShow Answer

When one constant is used to smooth the forecast average and a second constant is used to smooth the trend,the forecasting method is ________.

Correct Answerverifiedexponential smoothing with tre...View AnswerShow Answer

The larger the number of periods in the simple moving average forecasting method,the greater the method's responsiveness to changes in demand.

Correct AnswerverifiedShow Answer

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period.

Correct AnswerverifiedShow Answer

If Brandon Edward were working to develop a forecast using a moving averages approach,but he noticed a detectable trend in the historical data,he should:

Correct AnswerverifiedShow Answer

Correct Answer
verified
1.Determine the use of the forecast.
2.S...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Qualitative forecasting methods include:...
View Answer

Correct Answer
verified
166.6;161.2 The larger the smo...
View Answer

Correct Answer
verified
The list includes naive,moving...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Measures of forecast accuracy include: (...
View Answer

Correct Answer
verified
Week Sales 3WMA |error|
1 25
2...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
exponential smoothing with tre...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified