Question 1

Nonlinear and multiple regression procedures permit us to extend associative models to relationships that are nonlinear or involve more than one predictor variable.

Accepted Answer

A) True 
 B)False

Question 2

Removing the seasonal component from a data series (deseasonalizing)can be accomplished by dividing each data point by its appropriate seasonal relative.

Accepted Answer

A) True 
 B)False

Question 3

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 the least squares trend line for these data?

Accepted Answer

A) 20,000 
B) 21,000 
C) 22,000 
D) 23,000 
E) 24,000 
A) 20,000 
B) 21,000 
C) 22,000 
D) 23,000 
E) 24,000

Question 4

Which forecast uses opinions gathered from consumer surveys, managers, sales staff, experts, and executives?

Accepted Answer

A) associative 
B) time-series 
C) judgmental 
D) capacity 
E) quantitative 
A) associative 
B) time-series 
C) judgmental 
D) capacity 
E) quantitative

Question 5

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data:
 
What is the forecast for this year using a three-year weighted moving average with weights of 0.5, 0.3, and 0.2?

Accepted Answer

A) 163 
B) 180 
C) 300 
D) 420 
E) 510 
A) 163 
B) 180 
C) 300 
D) 420 
E) 510

Question 6

Which of the following is/are a primary input into capacity, sales, and production planning?

Accepted Answer

A) product design 
B) market share 
C) ethics 
D) globalization 
E) demand forecasts 
A) product design 
B) market share 
C) ethics 
D) globalization 
E) demand forecasts

Question 7

An advantage of trend-adjusted exponential smoothing over the linear trend equation is its ability to adjust over time to changes in the trend.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a step in the forecasting process?

Accepted Answer

A) Determine the purpose and level of detail required. 
B) Eliminate all assumptions. 
C) Establish a time horizon. 
D) Select a forecasting model. 
E) Monitor the forecast. 
A) Determine the purpose and level of detail required. 
B) Eliminate all assumptions. 
C) Establish a time horizon. 
D) Select a forecasting model. 
E) Monitor the forecast.

Question 9

Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to:

Accepted Answer

A) 0.01. 
B) 0.10. 
C) 0.15. 
D) 0.20. 
E) 0.60. 
A) 0.01. 
B) 0.10. 
C) 0.15. 
D) 0.20. 
E) 0.60.

Question 10

Trend-adjusted exponential smoothing uses double smoothing to add twice the forecast error to last period's actual demand.

Accepted Answer

A) True 
 B)False

Question 11

The degree of management involvement in short-range forecasts is:

Accepted Answer

A) none. 
B) low. 
C) moderate. 
D) high. 
E) total. 
A) none. 
B) low. 
C) moderate. 
D) high. 
E) total.

Question 12

A managerial approach toward forecasting which seeks to actively influence demand is:

Accepted Answer

A) reactive. 
B) proactive. 
C) influential. 
D) protracted. 
E) retroactive. 
A) reactive. 
B) proactive. 
C) influential. 
D) protracted. 
E) retroactive.

Question 13

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data:
 
What is the forecast for this year using trend-adjusted (double)smoothing with alpha = 0.3 and beta = 0.2, if the forecast for last year was 310, the forecast for two years ago was 430, and the trend estimate for last year's forecast was −150?

Accepted Answer

A) 162.4 
B) 180.3 
C) 301.4 
D) 403.2 
E) 510.0 
A) 162.4 
B) 180.3 
C) 301.4 
D) 403.2 
E) 510.0

Question 14

In trend-adjusted exponential smoothing, the trend-adjusted forecast consists of

Accepted Answer

A) an exponentially smoothed forecast and a smoothed trend factor. 
B) the most recent actual value and an estimated trend value. 
C) the old forecast adjusted by a trend factor. 
D) the old forecast and a smoothed trend factor. 
E) a moving average and a trend factor. 
A) an exponentially smoothed forecast and a smoothed trend factor. 
B) the most recent actual value and an estimated trend value. 
C) the old forecast adjusted by a trend factor. 
D) the old forecast and a smoothed trend factor. 
E) a moving average and a trend factor.

Question 15

A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average.

Accepted Answer

A) True 
 B)False

Question 16

Given the following historical data, what is the simple three-period moving average forecast for period 6?

Accepted Answer

A) 67 
B) 115 
C) 69 
D) 68 
E) 68.67 
A) 67 
B) 115 
C) 69 
D) 68 
E) 68.67

Question 17

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data:
 
What is the forecast for this year using the naive approach?

Accepted Answer

A) 100 
B) 200 
C) 300 
D) 500 
E) 600 
A) 100 
B) 200 
C) 300 
D) 500 
E) 600

Question 18

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.

Accepted Answer

A) True 
 B)False

Question 19

Forecasts of future demand are used by operations people to plan capacity.

Accepted Answer

A) True 
 B)False

Question 20

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data:
 
What is the forecast for this year using the least squares trend line for these data?

Accepted Answer

A) 163 
B) 180 
C) 300 
D) 420 
E) 510 
A) 163 
B) 180 
C) 300 
D) 420 
E) 510

Nonlinear and multiple regression procedures permit us to extend associative models to relationships that are nonlinear or involve more than one predictor variable.

Removing the seasonal component from a data series (deseasonalizing)can be accomplished by dividing each data point by its appropriate seasonal relative.

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 the least squares trend line for these data?

Which forecast uses opinions gathered from consumer surveys, managers, sales staff, experts, and executives?

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using a three-year weighted moving average with weights of 0.5, 0.3, and 0.2?

Which of the following is/are a primary input into capacity, sales, and production planning?

An advantage of trend-adjusted exponential smoothing over the linear trend equation is its ability to adjust over time to changes in the trend.

Which of the following is not a step in the forecasting process?

Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to:

Trend-adjusted exponential smoothing uses double smoothing to add twice the forecast error to last period's actual demand.

The degree of management involvement in short-range forecasts is:

A managerial approach toward forecasting which seeks to actively influence demand is:

In trend-adjusted exponential smoothing, the trend-adjusted forecast consists of

A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average.

Given the following historical data, what is the simple three-period moving average forecast for period 6?

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using the naive approach?

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.

Forecasts of future demand are used by operations people to plan capacity.

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using the least squares trend line for these data?

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

Nonlinear and multiple regression procedures permit us to extend associative models to relationships that are nonlinear or involve more than one predictor variable.

Removing the seasonal component from a data series (deseasonalizing)can be accomplished by dividing each data point by its appropriate seasonal relative.

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 the least squares trend line for these data?

Which forecast uses opinions gathered from consumer surveys, managers, sales staff, experts, and executives?

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using a three-year weighted moving average with weights of 0.5, 0.3, and 0.2?

Which of the following is/are a primary input into capacity, sales, and production planning?

An advantage of trend-adjusted exponential smoothing over the linear trend equation is its ability to adjust over time to changes in the trend.

Which of the following is not a step in the forecasting process?

Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to:

Trend-adjusted exponential smoothing uses double smoothing to add twice the forecast error to last period's actual demand.

The degree of management involvement in short-range forecasts is:

A managerial approach toward forecasting which seeks to actively influence demand is:

In trend-adjusted exponential smoothing, the trend-adjusted forecast consists of

A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average.

Given the following historical data, what is the simple three-period moving average forecast for period 6?

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using the naive approach?

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.

Forecasts of future demand are used by operations people to plan capacity.

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using the least squares trend line for these data?

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