Question 1

Aggregating the sales of several products (product family forecasts) provides less accurate forecasts for total sales than developing separate forecasts for each product and adding up to forecast values.

Accepted Answer

A) True 
 B)False  False

Question 2

What is time series analysis?

Accepted Answer

A statistical approach that relies heavily on historical demand data to project the future size of demand and recognizes trends and seasonal patterns.

Question 3

A business firm can be provided with the expected level of demand for goods and services by an economic forecast.

Accepted Answer

A) True 
 B)False  False

Question 4

Which one of the following is most useful for measuring the bias in a forecast?

Accepted Answer

A)   cumulative sum of forecast errors
B)   standard deviation of forecast errors
C)   percentage forecast error in period t
D)   mean absolute deviation of forecast errors

Question 5

Table 11.4.

-Use the information in Table 11.4. Use the three- month moving average method to forecast sales for June.

Accepted Answer

A)   less than or equal to 20 units
B)   greater than 20 but less than or equal to 22 units
C)   greater than 22 but less than or equal to 24 units
D)   greater than 24 units

Question 6

Explain the role of regression models (time series and otherwise) in forecasting. That is, how is trend projection able to forecast? How is regression used for causal forecasting?

Accepted Answer

The answer of Explain the role of regression models (time...

Question 7

_________ is the process of adjusting price at the right time for different customer segments to maximize revenues generated from existing supply capacity.

Accepted Answer

The answer of  _________ is the process of adjusting...

Question 8

Table 11.4

-Use the information in Table 11.4. What is the forecast for July with the two- month moving average method and June sales of 40 units?

Accepted Answer

A)   less than or equal to 25 units
B)   greater than 25 but less than or equal to 30 units
C)   greater than 30 but less than or equal to 35 units
D)   greater than 35 units

Question 9

With the trend- adjusted exponential smoothing method,

Accepted Answer

A)   the only smoothing is done on the trend estimates using exponential smoothing.
B)   the forecast for the next period is simply the average computed this period.
C)   an estimate of the trend is computed by taking the difference between the demand this period and the demand last period to avoid lengthy averaging calculations.
D)   the forecast can be adjusted to account for changes in the trend.

Question 10

With the multiplicative seasonal method of forecasting,

Accepted Answer

A)   there can only be four seasons in the time series data.
B)   the times series cannot exhibit a trend.
C)   the seasonal amplitude is a constant, regardless of the magnitude of average demand.
D)   seasonal factors are multiplied by an estimate of average demand to arrive at a seasonal forecast.

Question 11

The _________  is a process of gaining consensus from a group of experts while maintaining their anonymity.

Accepted Answer

The answer of The _________  is a process of...

Question 12

A backorder is the same as backlog.

Accepted Answer

A) True 
 B)False

Question 13

Table 11.4.

-Use the information in Table 11.4. Suppose actual sales in June turn out to be 40 units. Use the three- month moving average method to forecast the sales in July.

Accepted Answer

A)   less than or equal to 27
B)   greater than 27 but less than or equal to 29 units
C)   greater than 29 but less than or equal to 31 units
D)   greater than 31 units

Question 14

Describe the exponential smoothing method.

Accepted Answer

The answer of Describe the exponential smoothing method....

Question 15

Forecast error is simply the difference between the forecast and actual demand.

Accepted Answer

A) True 
 B)False

Question 16

The sample  _________ coefficient measures the direction and strength of the relationship between the independent and dependent variables in a linear regression equation.

Accepted Answer

The answer of The sample  _________ coefficient measures the...

Question 17

Explain the coefficient of linear correlation.

Accepted Answer

The answer of Explain the coefficient of linear correlation....

Question 18

Table 11.9.
$$\begin{array} { | c | c | c | } 
\hline \text { Quarter } & \begin{array} { c } 
\text { Forecasted } \
\text { Demand } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 85 & 95 \
2 & 55 & 55 \
3 & 70 & 45 \
4 & 60 & 75 \
\hline
\end{array}$$
-Use the information in Table 11.9. What is the mean absolute percent error for the data?

Accepted Answer

A)   less than 5%
B)   greater than or equal to 5%, but less than 13%
C)   greater than or equal to 13%, but less than or equal to 18%
D)   greater than 18%

Question 19

Table 11.7.
$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Units Sold } \
( 00 )
\end{array} \
\hline 1 & 150 \
2 & 145 \
3 & 160 \
4 & 180 \
5 & 220 \
\hline
\end{array}$
-TOMBOW is a small manufacturer of pencils and has had the following sales record for the most recent five months: Use the information in Table 11.7. The forecast for month 2 is

Accepted Answer

A)   less than or equal to 120 units.
B)   greater than 120 but less than or equal to 140 units.
C)   greater than 140 but less than or equal to 160 units.
D)   greater than 160 units.

Question 20

Discuss the tracking signal.

Accepted Answer

The answer of Discuss the tracking signal....

Exam 11: Managing Demand and Forecasting