Question 1

In a regression equation where y-hat is demand and x is advertising,a coefficient of determination (R2)of .70 means that 70% of the variance in advertising is explained by demand.

Accepted Answer

A) True 
 B)False

Question 2

Increasing the number of periods in a moving average will accomplish greater smoothing,but at the expense of:

Accepted Answer

A) manager understanding. 
B) accuracy. 
C) stability. 
D) sensitivity to real changes in the data. 
E) All of the above are diminished when the number of periods increases. 
A) manager understanding. 
B) accuracy. 
C) stability. 
D) sensitivity to real changes in the data. 
E) All of the above are diminished when the number of periods increases.

Question 3

Which time-series model uses BOTH past forecasts and past demand data to generate a new forecast?

Accepted Answer

A) naïve 
B) moving average 
C) weighted moving average 
D) exponential smoothing 
E) trend projection 
A) naïve 
B) moving average 
C) weighted moving average 
D) exponential smoothing 
E) trend projection

Question 4

Distinguish a dependent variable from an independent variable.

Accepted Answer

The dependent variable is the

Question 5

Distinguish between a weighted moving average model and an exponential smoothing model.

Accepted Answer

Exponential smoothing is a weighted movi

Question 6

The ________ measures the strength of the relationship between two variables.

Accepted Answer

coefficien

Question 7

The quarterly sales for specific educational software over the past three years are given in the following table.Compute the four seasonal factors.

Accepted Answer

The answer of The quarterly sales for specific educational software...

Question 8

A naïve forecast for September sales of a product would be equal to the sales in August.

Accepted Answer

A) True 
 B)False

Question 9

Identify two advantages of the moving average forecasting model.Identify two disadvantages of the moving average forecasting model.

Accepted Answer

Advantages of the model include: it uses

Question 10

Forecasts may be influenced by a product's position in its life cycle.

Accepted Answer

A) True 
 B)False

Question 11

What does it mean to "decompose" a time series?

Accepted Answer

To decompose a time series mea

Question 12

Most forecasting techniques assume that there is some underlying stability in the system.

Accepted Answer

A) True 
 B)False

Question 13

A forecast with a time horizon of about 3 months to 3 years is typically called a:

Accepted Answer

A) long-range forecast. 
B) medium-range forecast. 
C) short-range forecast. 
D) weather forecast. 
E) strategic forecast. 
A) long-range forecast. 
B) medium-range forecast. 
C) short-range forecast. 
D) weather forecast. 
E) strategic forecast.

Question 14

A(n)________ forecast uses an average of the most recent periods of data to forecast the next period.

Accepted Answer

moving ave

Question 15

Given forecast errors of -1,4,8,and -3,what is the mean absolute deviation?

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 8 
E) 16 
A) 2 
B) 3 
C) 4 
D) 8 
E) 16

Question 16

Suppose that the last four months of sales were 8,10,15,and 9 units,respectively.Suppose further that the last four forecasts were 5,6,11,and 12 units,respectively.What is the Mean Absolute Deviation (MAD)of these forecasts?

Accepted Answer

A) 2 
B) -10 
C) 3.5 
D) 9 
E) 10.5 
A) 2 
B) -10 
C) 3.5 
D) 9 
E) 10.5

Question 17

Compare seasonal effects and cyclical effects.

Accepted Answer

A cycle is longer (typically several yea

Question 18

One advantage of exponential smoothing is the limited amount of record keeping involved.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a type of qualitative forecasting?

Accepted Answer

A) jury of executive opinion 
B) sales force composite 
C) market survey 
D) Delphi method 
E) moving average 
A) jury of executive opinion 
B) sales force composite 
C) market survey 
D) Delphi method 
E) moving average

Question 20

Marie Bain is the production manager at a company that manufactures hot water heaters.Marie needs a demand forecast for the next few years to help decide whether to add new production capacity.The company's sales history (in thousands of units)is shown in the table below.Use exponential smoothing with trend adjustment to forecast demand for period 6.The initial forecast for period 1 was 11 units; the initial estimate of trend was 0.The smoothing constants are α = .3 and β = .3

Accepted Answer

The answer of Marie Bain is the production manager at...

Exam 4: Forecasting

In a regression equation where y-hat is demand and x is advertising,a coefficient of determination (R2)of .70 means that 70% of the variance in advertising is explained by demand.

Increasing the number of periods in a moving average will accomplish greater smoothing,but at the expense of:

Which time-series model uses BOTH past forecasts and past demand data to generate a new forecast?

Distinguish a dependent variable from an independent variable.

Distinguish between a weighted moving average model and an exponential smoothing model.

The ________ measures the strength of the relationship between two variables.

The quarterly sales for specific educational software over the past three years are given in the following table.Compute the four seasonal factors.

A naïve forecast for September sales of a product would be equal to the sales in August.

Identify two advantages of the moving average forecasting model.Identify two disadvantages of the moving average forecasting model.

Forecasts may be influenced by a product's position in its life cycle.

What does it mean to "decompose" a time series?

Most forecasting techniques assume that there is some underlying stability in the system.

A forecast with a time horizon of about 3 months to 3 years is typically called a:

A(n)________ forecast uses an average of the most recent periods of data to forecast the next period.

Given forecast errors of -1,4,8,and -3,what is the mean absolute deviation?

Suppose that the last four months of sales were 8,10,15,and 9 units,respectively.Suppose further that the last four forecasts were 5,6,11,and 12 units,respectively.What is the Mean Absolute Deviation (MAD)of these forecasts?

Compare seasonal effects and cyclical effects.

One advantage of exponential smoothing is the limited amount of record keeping involved.

Which of the following is not a type of qualitative forecasting?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Design of Goods and Services

Managing Quality

Process Strategy

Capacity and Constraint Management

Location Strategies

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Human Resources, job Design, and Work Measurement

Supply Chain Management

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Aggregate Planning and Sop

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit, tps, and Lean Operations

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Sustainability in the Supply Chain

Statistical Process Control

Supply Chain Management Analytics

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Linear Programming

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Waiting-Line Models

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