Question 1

The MAD is used to generate tracking signals.

Accepted Answer

A) True 
 B)False

Question 2

You are hired as a consultant to advise a small firm on forecasting methodology. Based on your research you find the company has a MAD of 3. Its wants to have a 99.7 percent control limits on its forecasting system. Its most recent tracking signal value is 15. What should be your report to the company?

Accepted Answer

A)  The forecasting model is operating acceptably 
B)  The forecasting model is out of control and needs to be corrected 
C)  The MAD value is incorrect 
D)  The upper control value is less than 20 
E)  The company is using an inappropriate forecasting methodology 
A)  The forecasting model is operating acceptably 
B)  The forecasting model is out of control and needs to be corrected 
C)  The MAD value is incorrect 
D)  The upper control value is less than 20 
E)  The company is using an inappropriate forecasting methodology

Question 3

Continual review and updating in light of new data is a forecasting technique called second-guessing.

Accepted Answer

A) True 
 B)False

Question 4

A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The respective forecasts were 120 for all four years. Which of the following is the resulting MAD value that can be computed from this data?

Accepted Answer

A)  2.5 
B)  10 
C)  20 
D)  22.5 
E)  30 
A)  2.5 
B)  10 
C)  20 
D)  22.5 
E)  30

Question 5

Which of the following forecasting methods uses executive judgment as its primary component for forecasting?

Accepted Answer

A)  Historical analogy 
B)  Time series analysis 
C)  Panel consensus 
D)  Market research 
E)  Linear regression 
A)  Historical analogy 
B)  Time series analysis 
C)  Panel consensus 
D)  Market research 
E)  Linear regression

Question 6

There are no differences in strategic and tactical forecasting. A forecast is a mathematical projection and its ultimate purpose should make no difference to the analyst.

Accepted Answer

A) True 
 B)False

Question 7

In causal relationship forecasting leading indicators are used to forecast occurrences.

Accepted Answer

A) True 
 B)False

Question 8

A company has a MAD of 10. Its wants to have a 99.7 percent control limits on its forecasting system. It's most recent tracking signal value is 3.1. What can the company conclude from this information?

Accepted Answer

A)  The forecasting model is operating acceptably 
B)  The forecasting model is out of control and needs to be corrected 
C)  The MAD value is incorrect 
D)  The upper control value is less than 20 
E)  It is using an inappropriate forecasting methodology 
A)  The forecasting model is operating acceptably 
B)  The forecasting model is out of control and needs to be corrected 
C)  The MAD value is incorrect 
D)  The upper control value is less than 20 
E)  It is using an inappropriate forecasting methodology

Question 9

A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data?

Accepted Answer

A)  1 
B)  3 
C)  5 
D)  15 
E)  123 
A)  1 
B)  3 
C)  5 
D)  15 
E)  123

Question 10

We usually associate the word "seasonal" with recurrent periods of repetitive activity that happen on other than an annual cycle.

Accepted Answer

A) True 
 B)False

Question 11

In business forecasting, what is usually considered a short-term time period?

Accepted Answer

A)  Four weeks or less 
B)  More than three months 
C)  Six months or more 
D)  Less than three months 
E)  One year 
A)  Four weeks or less 
B)  More than three months 
C)  Six months or more 
D)  Less than three months 
E)  One year

Question 12

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Accepted Answer

A)  Forecast error 
B)  Autocorrelation 
C)  Previous demand 
D)  Consistent demand 
E)  Repeat demand 
A)  Forecast error 
B)  Autocorrelation 
C)  Previous demand 
D)  Consistent demand 
E)  Repeat demand

Question 13

Which of the following forecasting methods can be used for short-term forecasting?

Accepted Answer

A)  Simple exponential smoothing 
B)  Delphi technique 
C)  Market research 
D)  Hoskins-Hamilton smoothing 
E)  Serial regression 
A)  Simple exponential smoothing 
B)  Delphi technique 
C)  Market research 
D)  Hoskins-Hamilton smoothing 
E)  Serial regression

Question 14

Simple exponential smoothing lags changes in demand.

Accepted Answer

A) True 
 B)False

Question 15

Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?

Accepted Answer

A)  1,000 
B)  1,030 
C)  1,070 
D)  1,130 
E)  970 
A)  1,000 
B)  1,030 
C)  1,070 
D)  1,130 
E)  970

Question 16

Market research is a quantitative method of forecasting.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?

Accepted Answer

A)  Time series analysis 
B)  Simple moving average 
C)  Weighted moving average 
D)  Delphi method 
E)  Panel consensus 
A)  Time series analysis 
B)  Simple moving average 
C)  Weighted moving average 
D)  Delphi method 
E)  Panel consensus

Question 18

Multiple regression analysis uses several regression models to generate a forecast.

Accepted Answer

A) True 
 B)False

Question 19

A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values , and we want to weight year 2014 at 30%, year 2015 at 30% and year 2016 at 40%, which of the following is the weighted moving average forecast for year 2018?

Accepted Answer

A)  170 
B)  168 
C)  158 
D)  152 
E)  146 
A)  170 
B)  168 
C)  158 
D)  152 
E)  146

Question 20

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Accepted Answer

A)  Cyclical elements 
B)  Future demand 
C)  Past demand 
D)  Inconsistent demand 
E)  Level demand 
A)  Cyclical elements 
B)  Future demand 
C)  Past demand 
D)  Inconsistent demand 
E)  Level demand

The MAD is used to generate tracking signals.

Continual review and updating in light of new data is a forecasting technique called second-guessing.

A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The respective forecasts were 120 for all four years. Which of the following is the resulting MAD value that can be computed from this data?

Which of the following forecasting methods uses executive judgment as its primary component for forecasting?

There are no differences in strategic and tactical forecasting. A forecast is a mathematical projection and its ultimate purpose should make no difference to the analyst.

In causal relationship forecasting leading indicators are used to forecast occurrences.

A company has a MAD of 10. Its wants to have a 99.7 percent control limits on its forecasting system. It's most recent tracking signal value is 3.1. What can the company conclude from this information?

A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data?

We usually associate the word "seasonal" with recurrent periods of repetitive activity that happen on other than an annual cycle.

In business forecasting, what is usually considered a short-term time period?

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Which of the following forecasting methods can be used for short-term forecasting?

Simple exponential smoothing lags changes in demand.

Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?

Market research is a quantitative method of forecasting.

Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?

Multiple regression analysis uses several regression models to generate a forecast.

A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values , and we want to weight year 2014 at 30%, year 2015 at 30% and year 2016 at 40%, which of the following is the weighted moving average forecast for year 2018?

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Operations and Supply Chain Management

Strategy and Sustainability

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

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Exam 3: Forecasting

The MAD is used to generate tracking signals.

Continual review and updating in light of new data is a forecasting technique called second-guessing.

A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The respective forecasts were 120 for all four years. Which of the following is the resulting MAD value that can be computed from this data?

Which of the following forecasting methods uses executive judgment as its primary component for forecasting?

There are no differences in strategic and tactical forecasting. A forecast is a mathematical projection and its ultimate purpose should make no difference to the analyst.

In causal relationship forecasting leading indicators are used to forecast occurrences.

A company has a MAD of 10. Its wants to have a 99.7 percent control limits on its forecasting system. It's most recent tracking signal value is 3.1. What can the company conclude from this information?

A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data?

We usually associate the word "seasonal" with recurrent periods of repetitive activity that happen on other than an annual cycle.

In business forecasting, what is usually considered a short-term time period?

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Which of the following forecasting methods can be used for short-term forecasting?

Simple exponential smoothing lags changes in demand.

Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?

Market research is a quantitative method of forecasting.

Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?

Multiple regression analysis uses several regression models to generate a forecast.

A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values , and we want to weight year 2014 at 30%, year 2015 at 30% and year 2016 at 40%, which of the following is the weighted moving average forecast for year 2018?

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand?

Operations and Supply Chain Management

Strategy and Sustainability

Strategic Capacity Management

Projects

Manufacturing Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters