Question 1

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

Accepted Answer

A)  20,000
B)  21,000
C)  22,000
D)  23,000
E)  24,000F) A) and C)
G) A) and B)

Question 2

What is this week's forecast using exponential smoothing with alpha = .2, if the forecast for two weeks ago was 90?

Accepted Answer

A)  49
B)  50
C)  52
D)  65
E)  77F) A) and B)
G) A) and C)

Question 3

A forecast method is generally deemed to perform adequately when the errors exhibit an identifiable pattern.

Accepted Answer

A) True 
 B)False

Question 4

In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naïve forecast would yield.

Accepted Answer

A) True 
 B)False

Question 5

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

The answer of A manager wants to choose one of...

Question 6

What is the forecast for this year using the least squares trend line for these data?

Accepted Answer

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

Question 7

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  3,600
B)  3,500
C)  3,400
D)  3,300
E)  3,200F) B) and D)
G) B) and C)

Question 9

The primary method for associative forecasting is:

Accepted Answer

A)  sensitivity analysis
B)  regression analysis
C)  simple moving averages
D)  centered moving averages
E)  exponential smoothingF) C) and D)
G) B) and E)

Question 10

An advantage of "trend adjusted exponential smoothing" over the "linear trend equation" is its ability to adjust over time to changes in the trend.

Accepted Answer

A) True 
 B)False

Question 11

Bias is measured by the cumulative sum of forecast errors.

Accepted Answer

A) True 
 B)False

Question 12

Exponential smoothing is a form of weighted averaging.

Accepted Answer

A) True 
 B)False

Question 13

A manager uses this equation to predict demand: Yt = 20 + 4t.Over the past 8 periods, demand has been as follows.Are the results acceptable? Explain.

Accepted Answer

Question 14

Given forecast errors of 5, 0, - 4, and 3, what is the mean absolute deviation?

Accepted Answer

A)  4
B)  3
C)  2.5
D)  2
E)  1F) A) and C)
G) B) and C)

Question 15

Customer service levels can be improved by better:

Accepted Answer

A)  mission statements
B)  control charting
C)  short term forecast accuracy
D)  exponential smoothing
E)  customer selectionF) All of the above
G) D) and E)

Question 16

Forecasts based on time series (historical) data are referred to as associative forecasts.

Accepted Answer

A) True 
 B)False

Question 17

A tracking signal focuses on the ratio of cumulative forecast error to the corresponding value of MAD.

Accepted Answer

A) True 
 B)False

Question 18

Trend adjusted exponential smoothing requires selection of two smoothing constants.

Accepted Answer

A) True 
 B)False

Question 19

What is this month's forecast using the naive approach?

Accepted Answer

A)  100
B)  160
C)  130
D)  140
E)  120F) None of the above
G) A) and B)

Question 20

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

Accepted Answer

A)  estimate of accuracy
B)  timeliness
C)  meaningful units
D)  low cost
E)  writtenF) A) and D)
G) A) and E)

Exam 3: Forecasting

Exponential smoothing is a form of weighted averaging.

Correct AnswerverifiedShow Answer

What is the forecast for this year using the least squares trend line for these data?

Correct AnswerverifiedShow Answer

A forecast method is generally deemed to perform adequately when the errors exhibit an identifiable pattern.

Correct AnswerverifiedShow Answer

The primary method for associative forecasting is:

Correct AnswerverifiedShow Answer

An advantage of "trend adjusted exponential smoothing" over the "linear trend equation" is its ability to adjust over time to changes in the trend.

Correct AnswerverifiedShow Answer

In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naïve forecast would yield.

Correct AnswerverifiedShow Answer

What is this month's forecast using the naive approach?

Correct AnswerverifiedShow Answer

A tracking signal focuses on the ratio of cumulative forecast error to the corresponding value of MAD.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Forecasts based on time series (historical) data are referred to as associative forecasts.

Correct AnswerverifiedShow Answer

Bias is measured by the cumulative sum of forecast errors.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Trend adjusted exponential smoothing requires selection of two smoothing constants.

Correct AnswerverifiedShow Answer

Customer service levels can be improved by better:

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 AnswerverifiedShow Answer

A manager uses this equation to predict demand: Yt = 20 + 4t.Over the past 8 periods, demand has been as follows.Are the results acceptable? Explain.

Correct AnswerverifiedShow Answer

What is this week's forecast using exponential smoothing with alpha = .2, if the forecast for two weeks ago was 90?

Correct AnswerverifiedShow Answer

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.

Correct AnswerverifiedShow Answer

Given forecast errors of 5, 0, - 4, and 3, what is the mean absolute deviation?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A manager uses this equation to predict demand: Y_t = 20 + 4t.Over the past 8 periods, demand has been as follows.Are the results acceptable? Explain.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified