Question 1

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

Accepted Answer

A) Simple moving average 
B) Market research 
C) Linear regression 
D) Exponential smoothing 
E) Multiple regression 
A) Simple moving average 
B) Market research 
C) Linear regression 
D) Exponential smoothing 
E) Multiple regression

Question 2

Decomposition of a time series means identifying and separating the time series data into its components.

Accepted Answer

A) True 
 B)False

Question 3

Linear regression is not useful for aggregate planning.

Accepted Answer

A) True 
 B)False

Question 4

Random errors can be defined as those that cannot be explained by the forecast model being used.

Accepted Answer

A) True 
 B)False

Question 5

Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model.

Accepted Answer

A) True 
 B)False

Question 6

What do we call forecasts that are for very high-level demand analysis? _______________________________________

Accepted Answer

str ategic forecasts
Explanation: Some f

Question 7

Cyclical influences on demand may come from occurrences such as political elections, war, or economic conditions.

Accepted Answer

A) True 
 B)False

Question 8

Distinguish between strategic and tactical forecasts.

Accepted Answer

Strategic and tactical forecasts are des

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A central premise of exponential smoothing is that more recent data are less indicative of the future than data from the distant past.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Market research is a quantitative method of forecasting.

Accepted Answer

A) True 
 B)False

Question 13

In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.

Accepted Answer

A) True 
 B)False

Question 14

For every forecasting problem, there is one best forecasting technique.

Accepted Answer

A) True 
 B)False

Question 15

A company wants to forecast demand using the weighted moving average.If the company uses two prior yearly sales values , and we want to weight year 2012 at 35 percent and year 2013 at 65 percent, what is the weighted moving average forecast for year 2014? __________________________________________

Accepted Answer

12,300
Explanation:

Question 16

As a consultant, you have been asked to generate a unit demand forecast for a product for year 2014 using exponential smoothing.The actual demand in year 2013 was 750.The forecast demand in year 2013 was 960.Using these data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2014 forecast value?

Accepted Answer

A) 766 
B) 813 
C) 897 
D) 1,023 
E) 1,120 
A) 766 
B) 813 
C) 897 
D) 1,023 
E) 1,120

Question 17

The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not one of the basic types of forecasting?

Accepted Answer

A) Qualitative 
B) Time series analysis 
C) Causal relationships 
D) Simulation 
E) Force field analysis 
A) Qualitative 
B) Time series analysis 
C) Causal relationships 
D) Simulation 
E) Force field analysis

Question 19

If the intercept value of a linear regression model is 40, the slope value is 40, and the value of X is 40, which of the following is the resulting forecast value using this model?

Accepted Answer

A) 120 
B) 1,600 
C) 1,640 
D) 2,200 
E) 64,000 
A) 120 
B) 1,600 
C) 1,640 
D) 2,200 
E) 64,000

Question 20

In the simple exponential smoothing forecasting model, you need at least 30 observations to set the smoothing constant alpha.

Accepted Answer

A) True 
 B)False

Exam 18: Forecasting

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

Decomposition of a time series means identifying and separating the time series data into its components.

Linear regression is not useful for aggregate planning.

Random errors can be defined as those that cannot be explained by the forecast model being used.

Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model.

What do we call forecasts that are for very high-level demand analysis? _______________________________________

Cyclical influences on demand may come from occurrences such as political elections, war, or economic conditions.

Distinguish between strategic and tactical forecasts.

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

A central premise of exponential smoothing is that more recent data are less indicative of the future than data from the distant past.

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.

In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.

For every forecasting problem, there is one best forecasting technique.

A company wants to forecast demand using the weighted moving average.If the company uses two prior yearly sales values , and we want to weight year 2012 at 35 percent and year 2013 at 65 percent, what is the weighted moving average forecast for year 2014? __________________________________________

The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1.

Which of the following is not one of the basic types of forecasting?

If the intercept value of a linear regression model is 40, the slope value is 40, and the value of X is 40, which of the following is the resulting forecast value using this model?

In the simple exponential smoothing forecasting model, you need at least 30 observations to set the smoothing constant alpha.

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