Question 1

A seasonal relative (or seasonal indexes)is expressed as a percentage of average or trend.

Accepted Answer

A) True 
 B)False

Question 2

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data:
 
What is this year's forecast using a two-year weighted moving average with weights of 0.7 and 0.3?

Accepted Answer

A) 19,400 
B) 18,600 
C) 19,000 
D) 11,400 
E) 10,600 
A) 19,400 
B) 18,600 
C) 19,000 
D) 11,400 
E) 10,600

Question 3

The owner of Yummy Yummy Catering needs to ensure she has enough employees scheduled for the upcoming week to assist with cooking. She needs to forecast the number of clients that will book her services. She has the following historical data:
 
What is the forecast for this week using weighted moving average with weights of 0.5, 0.3, and 0.2?

Accepted Answer

A) 51 
B) 29 
C) 48 
D) 40 
E) 37 
A) 51 
B) 29 
C) 48 
D) 40 
E) 37

Question 4

When new products or services are introduced, focus forecasting models are an attractive option.

Accepted Answer

A) True 
 B)False

Question 5

The president of State University wants to forecast student enrollments for this academic year based on the following historical data:
 
What is the forecast for this year using the naive approach?

Accepted Answer

A) 18,750 
B) 19,500 
C) 21,000 
D) 22,000 
E) 22,800 
A) 18,750 
B) 19,500 
C) 21,000 
D) 22,000 
E) 22,800

Question 6

Time-series techniques involve the identification of explanatory variables that can be used to predict future demand.

Accepted Answer

A) True 
 B)False

Question 7

The president of State University wants to forecast student enrollments for this academic year based on the following historical data:
 
What is the forecast for this year using a four-year simple moving average?

Accepted Answer

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

Question 8

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 selection. 
A) mission statements. 
B) control charting. 
C) short-term forecast accuracy. 
D) exponential smoothing. 
E) customer selection.

Question 9

For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques.

Accepted Answer

A) True 
 B)False

Question 10

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data:
 
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) 3,200 
A) 3,600 
B) 3,500 
C) 3,400 
D) 3,300 
E) 3,200

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Forecasts help managers both to plan the system itself and to provide valuable information for using the system.

Accepted Answer

A) True 
 B)False

Question 13

The naive forecast can serve as a quick and easy standard of comparison against which to judge the cost and accuracy of other techniques.

Accepted Answer

A) True 
 B)False

Question 14

Given forecast errors of 4, 8, and −3, what is the mean absolute deviation?

Accepted Answer

A) 4 
B) 3 
C) 5 
D) 6 
E) 12 
A) 4 
B) 3 
C) 5 
D) 6 
E) 12

Question 15

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

Accepted Answer

A) 0 
B) 0.01 
C) 0.05 
D) 0.10 
E) 0.15 
A) 0 
B) 0.01 
C) 0.05 
D) 0.10 
E) 0.15

Question 16

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) 1 
A) 4 
B) 3 
C) 2.5 
D) 2 
E) 1

Question 17

Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows: w t-3 = 0.2, w t-2 = 0.3 and w t-1 = 0.5. Demand observed in the previous three periods was as follows: A t-3 = 2,200, A t-2 = 1,950, and A t-1 = 2,050. What will be the demand forecast for period t?

Accepted Answer

A) 2,000 
B) 2,095 
C) 1,980 
D) 2,050 
E) 1,875 
A) 2,000 
B) 2,095 
C) 1,980 
D) 2,050 
E) 1,875

Question 18

Forecasts based on judgment and opinion do not include:

Accepted Answer

A) executive opinion. 
B) salesperson opinion. 
C) second opinions. 
D) customer surveys. 
E) Delphi methods. 
A) executive opinion. 
B) salesperson opinion. 
C) second opinions. 
D) customer surveys. 
E) Delphi methods.

Question 19

Bias exists when forecasts tend to be greater or less than the actual values of time series.

Accepted Answer

A) True 
 B)False

Question 20

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data:
 
What is this year's forecast using a three-year simple moving average?

Accepted Answer

A) 2,667 
B) 2,600 
C) 2,500 
D) 2,400 
E) 2,333 
A) 2,667 
B) 2,600 
C) 2,500 
D) 2,400 
E) 2,333

A seasonal relative (or seasonal indexes)is expressed as a percentage of average or trend.

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: What is this year's forecast using a two-year weighted moving average with weights of 0.7 and 0.3?

When new products or services are introduced, focus forecasting models are an attractive option.

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: What is the forecast for this year using the naive approach?

Time-series techniques involve the identification of explanatory variables that can be used to predict future demand.

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: What is the forecast for this year using a four-year simple moving average?

Customer service levels can be improved by better:

For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques.

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: What is this year's forecast using the least squares trend line for these data?

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

Forecasts help managers both to plan the system itself and to provide valuable information for using the system.

The naive forecast can serve as a quick and easy standard of comparison against which to judge the cost and accuracy of other techniques.

Given forecast errors of 4, 8, and −3, what is the mean absolute deviation?

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

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

Forecasts based on judgment and opinion do not include:

Bias exists when forecasts tend to be greater or less than the actual values of time series.

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: What is this year's forecast using a three-year simple moving average?

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

Inventory Management

MRP and ERP

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters

Exam 3: Forecasting

A seasonal relative (or seasonal indexes)is expressed as a percentage of average or trend.

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: What is this year's forecast using a two-year weighted moving average with weights of 0.7 and 0.3?

When new products or services are introduced, focus forecasting models are an attractive option.

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: What is the forecast for this year using the naive approach?

Time-series techniques involve the identification of explanatory variables that can be used to predict future demand.

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: What is the forecast for this year using a four-year simple moving average?

Customer service levels can be improved by better:

For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques.

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: What is this year's forecast using the least squares trend line for these data?

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

Forecasts help managers both to plan the system itself and to provide valuable information for using the system.

The naive forecast can serve as a quick and easy standard of comparison against which to judge the cost and accuracy of other techniques.

Given forecast errors of 4, 8, and −3, what is the mean absolute deviation?

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

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

Forecasts based on judgment and opinion do not include:

Bias exists when forecasts tend to be greater or less than the actual values of time series.

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: What is this year's forecast using a three-year simple moving average?

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

Inventory Management

MRP and ERP

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters