Question 1

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

Accepted Answer

Any three of: planning new pro...

Question 2

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 associativeF) B) and E)
G) A) and D)

Question 3

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?

Accepted Answer

A)   640 units
B)   798.75 units
C)   801.25 units
D)   1000 units
E)   88.33 unitsF) A) and B)
G) A) and C) D

Question 4

A forecast based on the previous forecast plus a percentage of the forecast error is a(n)

Accepted Answer

A)   qualitative forecast
B)   naive forecast
C)   moving average forecast
D)   weighted moving average forecast
E)   exponentially smoothed forecastF) B) and C)
G) B) and E)

Question 5

Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting)  for its planning purposes?

Accepted Answer

A)   job scheduling
B)   production levels
C)   cash budgeting
D)   capital expenditures
E)   purchasingF) A) and C)
G) B) and E)

Question 6

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

Accepted Answer

A)   executive opinions
B)   sales force composites
C)   the Delphi method
D)   associative models
E)   time series analysisF) A) and B)
G) A) and C)

Question 7

__________ is a forecasting technique based upon salespersons' estimates of expected sales.

Accepted Answer

Sales forc...

Question 8

__________ expresses the error as a percent of the actual values, undistorted by a single large value.

Accepted Answer

A)   MAD
B)   MSE
C)   MAPE
D)   FIT
E)   The smoothing constantF) B) and D)
G) A) and E)

Question 9

Give an example-other than a restaurant or other food-service firm-of an organization that experiences an hourly seasonal pattern. (That is, each hour of the day has a pattern that tends to repeat day after day.) Explain.

Accepted Answer

Answer will vary. Ho...

Question 10

The following trend projection is used to predict quarterly demand: Y = 250 - 2.5t, where t = 1 in the first quarter. Seasonal (quarterly) indices are Quarter 1 = 1.5; Quarter 2 = 0.8; Quarter 3 = 1.1; and Quarter 4 = 0.6. What is the seasonally adjusted forecast for the next four quarters?

Accepted Answer

Quarter Projection A...

Question 11

What is the difference between an associative model and a time-series model?

Accepted Answer

A time-series model uses only historical values of the quantity of interest to predict future values of that quantity. The associative model, on the other hand, attempts to identify underlying factors that control the variation of the quantity of interest, predict future values of these factors, and use these predictions in a model to predict future values of the specific quantity of interest.

Question 12

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 D)
G) A) and D)

Question 13

What is focus forecasting?

Accepted Answer

It is a forecasting method that tries a variety of computer models, and selects the one that is best for a particular application.

Question 14

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 15

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 oneF) B) and C)
G) A) and E)

Question 16

Which time-series model uses past forecasts and past demand data to generate a new forecast?

Accepted Answer

A)   naive
B)   moving average
C)   weighted moving average
D)   exponential smoothing
E)   regression analysisF) All of the above
G) C) and E)

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Identify the seven steps involved in forecasting.

Accepted Answer

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

Question 20

__________ forecasts are concerned with rates of technological progress, which can result in the birth of exciting new products, requiring new plants and equipment.

Accepted Answer

The answer of __________ forecasts are concerned with rates of...

Exam 4: Forecasting

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

Correct Answer
verified
Any three of: planning new pro...
View Answer

The two general approaches to forecasting are

Correct Answer
verified

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?

Correct Answer
verified
D

A forecast based on the previous forecast plus a percentage of the forecast error is a(n)

Correct Answer
verified

Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting) for its planning purposes?

Correct Answer
verified

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

Correct Answer
verified

__________ is a forecasting technique based upon salespersons' estimates of expected sales.

Correct Answer
verified
Sales forc...
View Answer

__________ expresses the error as a percent of the actual values, undistorted by a single large value.

Correct Answer
verified

Give an example-other than a restaurant or other food-service firm-of an organization that experiences an hourly seasonal pattern. (That is, each hour of the day has a pattern that tends to repeat day after day.) Explain.

Correct Answer
verified
Answer will vary. Ho...
View Answer

The following trend projection is used to predict quarterly demand: Y = 250 - 2.5t, where t = 1 in the first quarter. Seasonal (quarterly) indices are Quarter 1 = 1.5; Quarter 2 = 0.8; Quarter 3 = 1.1; and Quarter 4 = 0.6. What is the seasonally adjusted forecast for the next four quarters?

Correct Answer
verified
Quarter Projection A...
View Answer

What is the difference between an associative model and a time-series model?

The fundamental difference between cycles and seasonality is the

Correct Answer
verified

What is focus forecasting?

Correct Answer
verified
It is a forecasting method that tries a variety of computer models, and selects the one that is best for a particular application.

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

Correct Answer
verified
Any three of: planning purchas...
View Answer

A fundamental distinction between trend projection and linear regression is that

Correct Answer
verified

Which time-series model uses past forecasts and past demand data to generate a new forecast?

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

Correct Answer
verified

Identify the seven steps involved in forecasting.

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

__________ forecasts are concerned with rates of technological progress, which can result in the birth of exciting new products, requiring new plants and equipment.

Correct Answer
verified

Exam 4: Forecasting

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

Correct AnswerverifiedAny three of: planning new pro...View AnswerShow Answer

The two general approaches to forecasting are

Correct AnswerverifiedShow Answer

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?

Correct AnswerverifiedD

A forecast based on the previous forecast plus a percentage of the forecast error is a(n)

Correct AnswerverifiedShow Answer

Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting) for its planning purposes?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

__________ is a forecasting technique based upon salespersons' estimates of expected sales.

Correct AnswerverifiedSales forc...View AnswerShow Answer

__________ expresses the error as a percent of the actual values, undistorted by a single large value.

Correct AnswerverifiedShow Answer

Give an example-other than a restaurant or other food-service firm-of an organization that experiences an hourly seasonal pattern. (That is, each hour of the day has a pattern that tends to repeat day after day.) Explain.

Correct AnswerverifiedAnswer will vary. Ho...View AnswerShow Answer

The following trend projection is used to predict quarterly demand: Y = 250 - 2.5t, where t = 1 in the first quarter. Seasonal (quarterly) indices are Quarter 1 = 1.5; Quarter 2 = 0.8; Quarter 3 = 1.1; and Quarter 4 = 0.6. What is the seasonally adjusted forecast for the next four quarters?

Correct AnswerverifiedQuarter Projection A...View AnswerShow Answer

What is the difference between an associative model and a time-series model?

The fundamental difference between cycles and seasonality is the

Correct AnswerverifiedShow Answer

What is focus forecasting?

Correct AnswerverifiedIt is a forecasting method that tries a variety of computer models, and selects the one that is best for a particular application.

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

A fundamental distinction between trend projection and linear regression is that

Correct AnswerverifiedShow Answer

Which time-series model uses past forecasts and past demand data to generate a new forecast?

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

Correct AnswerverifiedShow Answer

Identify the seven steps involved in forecasting.

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

__________ forecasts are concerned with rates of technological progress, which can result in the birth of exciting new products, requiring new plants and equipment.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Any three of: planning new pro...
View Answer

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Sales forc...
View Answer

Correct Answer
verified

Correct Answer
verified
Answer will vary. Ho...
View Answer

Correct Answer
verified
Quarter Projection A...
View Answer

Correct Answer
verified

Correct Answer
verified
It is a forecasting method that tries a variety of computer models, and selects the one that is best for a particular application.

Correct Answer
verified
Any three of: planning purchas...
View Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified