Question 1

Moving average and exponential smoothing forecasting techniques are used for long range forecasts.

Accepted Answer

A) True 
 B)False

Question 2

Use linear regression to develop a predictive model for demand for ironing board covers based on sales of irons.
  (i)Develop the equation.
(ii)What is the coefficient of correlation for this data?

Accepted Answer

The answer of Use linear regression to develop a predictive...

Question 3

The square root of MSE is used to estimate the sample standard deviation of forecast errors.

Accepted Answer

A) True 
 B)False

Question 4

What is this week's forecast using the least squares trend line for these data?

Accepted Answer

A)   49
B)   50
C)   52
D)   65
E)   78F) A) and E)
G) A) and B)

Question 5

Develop a linear trend equation for the data on bread deliveries shown below.Forecast deliveries for period 11 through 14.

Accepted Answer

Y_t = 518.2 + 52.164t
...

Question 6

MAPE measures the:

Accepted Answer

A)   mean actual produced error.
B)   mean absolute percent error.
C)   main accuracy percent evaluation.
D)   mean absolute produced error.
E)   mean average percent error.F) A) and B)
G) A) and E)

Question 7

Disadvantages of naive forecasts include:
I.time-consuming to prepare
II.the techniques are complex therefore difficult to understand
III.do not smooth random variations

Accepted Answer

A)   I, II, and III
B)   I and II
C)   I and III
D)   II and III
E)   none of the choices are disadvantages.F) B) and E)
G) All of the above

Question 8

Consider the data below:
  (i)Determine a naive forecast for period 14.
(ii)Using exponential smoothing with a = .2,and F 12 = 80,what would the forecast for period 14 be?

Accepted Answer

(i)Naive: 82 (Since ...

Question 9

A manager wants to choose one of two forecasting alternatives.Each alternative was tested using historical data.The resulting forecast errors for the two are shown in the table.Analyze the data and recommend a course of action to the manager.

Accepted Answer

MSE #1 = 3.875
MSE #2 = 4.75
Although Al...

Question 10

The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is:

Accepted Answer

A)   sales force opinions.
B)   consumer surveys.
C)   the Delphi method.
D)   time series analysis.
E)   executive opinions.F) A) and E)
G) All of the above

Question 11

The use of a control chart assumes that errors are normally distributed about a mean of zero.

Accepted Answer

A) True 
 B)False

Question 12

What is the forecast for this year using a four-year simple moving average?

Accepted Answer

A)   18,750
B)   19,500
C)   21,000
D)   22,650
E)   22,800F) B) and C)
G) A) and B)

Question 13

Which of the following steps is considered the last step in the forecasting process?

Accepted Answer

A)   Gather and analyze relevant historical data.
B)   Determine the purpose of the forecast.
C)   Monitor the forecast.
D)   Prepare the forecast.
E)   Establish a time horizon.F) All of the above
G) A) and D)

Question 14

Which of the following is used for constructing a control chart?

Accepted Answer

A)   Mean absolute deviation (MA
D)  
B)   Mean absolute percentage error (MAP
E)  
C)   Tracking signal (TS) 
D)   Actual - forecast
E)   None of the choices are correct.F) B) and D)
G) C) and D)

Question 15

In order to increase the responsiveness of a forecast made using the moving average technique,the number of data points in the average should be:

Accepted Answer

A)   decreased.
B)   increased.
C)   multiplied by a larger alpha.
D)   multiplied by a smaller alpha.
E)   none of the choices are true.F) A) and B)
G) B) and C)

Question 16

Averaging forecasting techniques are useful for:
I.distinguishing between random and non-random variations
II.smoothing out fluctuations in data
III.forecasting cyclical time series

Accepted Answer

A)   I only
B)   I and II only
C)   II only
D)   II and III only
E)   I, II, and IIIF) All of the above
G) B) and D)

Question 17

Which of the following is not necessarily an element of a good forecast?

Accepted Answer

A)   The degree of accuracy is stated.
B)   Time horizon long enough so forecast results can be used.
C)   Expressed in meaningful units.
D)   Low cost to complete.
E)   Technique is simple to understand and use.F) A) and D)
G) None of the above

Question 18

-What are this and next year's forecasts using the least squares trend line for these data?

Accepted Answer

The answer of 
-What are this and next year's forecasts...

Question 19

A manager uses the following equation to predict monthly receipts: Yt= 40,000 + 150t.What is the forecast for December if t = 0 for the month of April?

Accepted Answer

A)   40,050
B)   41,050
C)   41,200
D)   41,300
E)   41,500F) A) and D)
G) B) and E)

Question 20

-What is the centred moving average for each season?

Accepted Answer

Spring 26;...

Exam 3: Demand Forecasting

Which of the following is used for constructing a control chart?

Correct AnswerverifiedShow Answer

Consider the data below: (i)Determine a naive forecast for period 14. (ii)Using exponential smoothing with a = .2,and F 12 = 80,what would the forecast for period 14 be?

Correct Answerverified(i)Naive: 82 (Since ...View AnswerShow Answer

MAPE measures the:

Correct AnswerverifiedShow Answer

-What are this and next year's forecasts using the least squares trend line for these data?

Correct AnswerverifiedShow Answer

What is this week's forecast using the least squares trend line for these data?

Correct AnswerverifiedShow Answer

The use of a control chart assumes that errors are normally distributed about a mean of zero.

Correct AnswerverifiedShow Answer

A manager wants to choose one of two forecasting alternatives.Each alternative was tested using historical data.The resulting forecast errors for the two are shown in the table.Analyze the data and recommend a course of action to the manager.

Correct AnswerverifiedMSE #1 = 3.875MSE #2 = 4.75Although Al...View AnswerShow Answer

A manager uses the following equation to predict monthly receipts: Yt= 40,000 + 150t.What is the forecast for December if t = 0 for the month of April?

Correct AnswerverifiedShow Answer

Which of the following steps is considered the last step in the forecasting process?

Correct AnswerverifiedShow Answer

The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is:

Correct AnswerverifiedShow Answer

-What is the centred moving average for each season?

Correct AnswerverifiedSpring 26;...View AnswerShow Answer

What is the forecast for this year using a four-year simple moving average?

Correct AnswerverifiedShow Answer

Which of the following is not necessarily an element of a good forecast?

Correct AnswerverifiedShow Answer

Averaging forecasting techniques are useful for: I.distinguishing between random and non-random variations II.smoothing out fluctuations in data III.forecasting cyclical time series

Correct AnswerverifiedShow Answer

Use linear regression to develop a predictive model for demand for ironing board covers based on sales of irons. (i)Develop the equation. (ii)What is the coefficient of correlation for this data?

Correct AnswerverifiedShow Answer

Moving average and exponential smoothing forecasting techniques are used for long range forecasts.

Correct AnswerverifiedShow Answer

Develop a linear trend equation for the data on bread deliveries shown below.Forecast deliveries for period 11 through 14.

Correct AnswerverifiedYt = 518.2 + 52.164t...View AnswerShow Answer

In order to increase the responsiveness of a forecast made using the moving average technique,the number of data points in the average should be:

Correct AnswerverifiedShow Answer

Disadvantages of naive forecasts include: I.time-consuming to prepare II.the techniques are complex therefore difficult to understand III.do not smooth random variations

Correct AnswerverifiedShow Answer

The square root of MSE is used to estimate the sample standard deviation of forecast errors.

Correct AnswerverifiedShow Answer

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(i)Naive: 82 (Since ...
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MSE #1 = 3.875
MSE #2 = 4.75
Although Al...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Spring 26;...
View Answer

Correct Answer
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Correct Answer
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Y_t = 518.2 + 52.164t
...
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Correct Answer
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Correct Answer
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Correct Answer
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