Question 1

Which of the following are costs of an inaccurate forecast?

Accepted Answer

A)  Lost sales 
B)  Inventory 
C)  An understaffed office 
D)  Lower profits 
E)  All of the above F) B) and C)
G) None of the above

Question 2

Given forecast errors of -5,-10,and 15,what is the mean absolute deviation?

Accepted Answer

A)  0 
B)  5 
C)  10 
D)  30 
E)  None of the above F) A) and B)
G) A) and C) C

Question 3

Using the latest value in a sequence of data to forecast the next period is:

Accepted Answer

A)  a moving-average forecast 
B)  a last-value forecast 
C)  an exponentially smoothed forecast 
D)  a causal forecast 
E)  None of the above F) B) and E)
G) B) and C)

Question 4

Given forecast errors of 4,8,and -3,what is the mean square error?

Accepted Answer

A)  5
B)  9
C)  25
D)  29 67
E)  89F) C) and E)
G) All of the above

Question 5

The mean absolute deviation is used to:

Accepted Answer

A)  estimate the trend line 
B)  eliminate forecast errors 
C)  measure forecast accuracy 
D)  seasonally adjust the forecast 
E)  All of the above F) B) and C)
G) A) and B)

Question 6

Gradual,long-term movement in time-series values is called:

Accepted Answer

A)  seasonal variation 
B)  trend 
C)  cycles 
D)  irregular variation 
E)  random variation F) A) and C)
G) B) and C)

Question 7

Causal forecasting obtains a forecast for a dependent variable by relating it directly to one or more independent variables

Accepted Answer

A) True 
 B)False

Question 8

Professor Z needs to allocate time among several tasks next week to include time for students' appointments.Thus,he needs to forecast the number of students who will seek appointments.He has gathered the following data:
Week # of students
6 weeks ago 83
5 weeks ago 110
4 weeks ago 95
3 weeks ago 80
2 weeks ago 65
Last week 50
-What is the forecast for this year using the last-value forecasting method?

Accepted Answer

A)  22,000 
B)  20,000 
C)  18,000 
D)  15,000 
E)  12,000 F) C) and D)
G) None of the above

Question 9

In business,forecasts are the basis for:

Accepted Answer

A)  sales planning 
B)  inventory planning 
C)  production planning 
D)  budgeting 
E)  All of the above F) B) and D)
G) All of the above

Question 10

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data:
Time Period :Demand
5 years ago :900
4 years ago : 700
3 years ago : 600
2 years ago :500
Last year :300
-What is the forecast for this year using exponential smoothing with  α\alphaα  = 0 4,if the forecast for two years ago was 750?

Accepted Answer

A)  163 
B)  180 
C)  300 
D)  467 
E)  510  F) A) and B)
G) B) and E)

Question 11

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data:
Time Period :Demand
5 years ago :900
4 years ago : 700
3 years ago : 600
2 years ago :500
Last year :300
-What is the forecast for this year using the last-value forecasting method?

Accepted Answer

A)  49 
B)  50 
C)  52 
D)  65 
E)  78 F) B) and E)
G) None of the above

Question 12

Professor Z needs to allocate time among several tasks next week to include time for students' appointments.Thus,he needs to forecast the number of students who will seek appointments.He has gathered the following data:
Week # of students
6 weeks ago 83
5 weeks ago 110
4 weeks ago 95
3 weeks ago 80
2 weeks ago 65
Last week 50
-What is the forecast for this year using a moving-average forecast based on the last three weeks?

Accepted Answer

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

Question 13

The mean absolute deviation is more sensitive to large deviations than the mean square error

Accepted Answer

A) True 
 B)False

Question 14

Forecasts are rarely perfect

Accepted Answer

A) True 
 B)False

Question 15

Forecasting techniques such as moving-average,exponential smoothing,and the last-value method all represent averaged values of time-series data

Accepted Answer

A) True 
 B)False

Question 16

A smoothing constant of 0 1 will cause an exponential smoothing forecast to react more quickly to a sudden change than a value of 0 3 will

Accepted Answer

A) True 
 B)False  False

Question 17

The president of State University wants to forecast student enrollment for this academic year based on the following historical data:
Year :Enrollments
5 years ago :15,000
4 years ago :16,000
3 years ago :18,000
2 years ago :20,000
Last year :21,000
-What is the forecast for this year using exponential smoothing with  α\alphaα = 0 5,if the forecast for two years ago was 16,000?

Accepted Answer

A)  18,750 
B)  19,500 
C)  21,000 
D)  22,650 
E)  22,800  F) None of the above
G) A) and D) B

Question 18

The last-value forecasting method is most useful when conditions are stable over time

Accepted Answer

A) True 
 B)False

Question 19

The sales force composite method is a top-down approach to forecasting

Accepted Answer

A) True 
 B)False

Question 20

Forecasts can help a manager to:

Accepted Answer

A)  anticipate the future 
B)  develop strategies 
C)  make staffing decisions 
D)  All of the above 
E)  None of the above F) C) and D)
G) B) and E)

Exam 10: Forecasting

Which of the following are costs of an inaccurate forecast?

Correct Answer
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Given forecast errors of -5,-10,and 15,what is the mean absolute deviation?

Correct Answer
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C

Using the latest value in a sequence of data to forecast the next period is:

Correct Answer
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Given forecast errors of 4,8,and -3,what is the mean square error?

Correct Answer
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The mean absolute deviation is used to:

Correct Answer
verified

Gradual,long-term movement in time-series values is called:

Correct Answer
verified

Causal forecasting obtains a forecast for a dependent variable by relating it directly to one or more independent variables

Correct Answer
verified

Correct Answer
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In business,forecasts are the basis for:

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The mean absolute deviation is more sensitive to large deviations than the mean square error

Correct Answer
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Forecasts are rarely perfect

Correct Answer
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Forecasting techniques such as moving-average,exponential smoothing,and the last-value method all represent averaged values of time-series data

Correct Answer
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A smoothing constant of 0 1 will cause an exponential smoothing forecast to react more quickly to a sudden change than a value of 0 3 will

Correct Answer
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False

Correct Answer
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B

The last-value forecasting method is most useful when conditions are stable over time

Correct Answer
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The sales force composite method is a top-down approach to forecasting

Correct Answer
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Forecasts can help a manager to:

Correct Answer
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Exam 10: Forecasting

Which of the following are costs of an inaccurate forecast?

Correct AnswerverifiedShow Answer

Given forecast errors of -5,-10,and 15,what is the mean absolute deviation?

Correct AnswerverifiedC

Using the latest value in a sequence of data to forecast the next period is:

Correct AnswerverifiedShow Answer

Given forecast errors of 4,8,and -3,what is the mean square error?

Correct AnswerverifiedShow Answer

The mean absolute deviation is used to:

Correct AnswerverifiedShow Answer

Gradual,long-term movement in time-series values is called:

Correct AnswerverifiedShow Answer

Causal forecasting obtains a forecast for a dependent variable by relating it directly to one or more independent variables

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In business,forecasts are the basis for:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The mean absolute deviation is more sensitive to large deviations than the mean square error

Correct AnswerverifiedShow Answer

Forecasts are rarely perfect

Correct AnswerverifiedShow Answer

Forecasting techniques such as moving-average,exponential smoothing,and the last-value method all represent averaged values of time-series data

Correct AnswerverifiedShow Answer

A smoothing constant of 0 1 will cause an exponential smoothing forecast to react more quickly to a sudden change than a value of 0 3 will

Correct AnswerverifiedFalse

Correct AnswerverifiedB

The last-value forecasting method is most useful when conditions are stable over time

Correct AnswerverifiedShow Answer

The sales force composite method is a top-down approach to forecasting

Correct AnswerverifiedShow Answer

Forecasts can help a manager to:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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C

Correct Answer
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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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Correct Answer
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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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Correct Answer
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Correct Answer
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Correct Answer
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False

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B

Correct Answer
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Correct Answer
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Correct Answer
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