Exam 18: Forecasting

The weighted moving average forecasting model uses a weighting scheme to modify the effects of individual data points.

In general, which forecasting time frame best identifies seasonal effects?

A company wants to generate a forecast for unit demand for year 2014 2017 using exponential smoothing.The actual demand in year 2013 2016 was 120.The forecast demand in year 2013 2016 was 110.Using these data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2014 2017 forecast value?

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

RSFE in forecasting stands for "reliable safety function error."

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 2015 at 10 percent and year 2013 2016 at 90 percent, which of the following is the weighted moving average forecast for year 20142017?

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 these data?

In forecasting, RSFE stands for "running sum of forecast errors."

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.

Exponential smoothing is always the best and most accurate of all forecasting models.

In decomposition of time series data, it is relatively easy to identify cycles and autocorrelation components.

Which of the following forecasting methodologies is considered a time series forecasting technique?

Which of the following is used to describe the degree of error?

In the weighted moving average forecasting model, the weights must add up to one times the number of data points.

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

MAD statistics can be used to generate tracking signals.

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 20142017?

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

Exponential smoothing forecasts always lag behind the actual occurrence but can be corrected somewhat with a trend adjustment.

Heavy sales of umbrellas during a rain storm is an example of which of the following?