Exam 15: Demand Management and Forecasting

When forecast errors occur in a normally distributed pattern, the ratio of the mean absolute deviation to the standard deviation is 2 to 1, or 2 x MAD = 1 standard deviation.

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

In general, which forecasting time frame is best to detect general trends?

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.

A company wants to forecast demand using the simple moving average.If the company uses four prior yearly sales values , which of the following is the simple moving average forecast for year 2012?

Time series forecasting models make predictions about the future based on analysis of past data.

The weighted moving average forecasting model uses a weighting scheme to modify the effects of individual data points.This is its major advantage over the simple moving average model.

In a forecasting model using simple exponential smoothing the data pattern should remain stationary.

Which of the following considerations is not a factor in deciding which forecasting model a firm should choose?

The exponential smoothing method requires which of the following data to forecast the future?

Independent demand is the demand for a product or service caused by the demand for other products or services.

There is not much that a firm can do to influence independent demand.

A company wants to forecast demand using the simple moving average.If the company uses three prior yearly sales values , which of the following is the simple moving average forecast for year 2012?

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

In general, which forecasting time frame compensates most effectively for random variation and short term changes?