Question 1

Which of the following is not a requirement of a properly prepared forecast?

Accepted Answer

A)  Timely
B)  Accurate
C)  Reliable
D)  Simple to understand and use
E)  InexpensiveF) A) and D)
G) A) and E)

Question 2

The naive forecast can serve as a standard of comparison against which to judge the cost and accuracy of other techniques.

Accepted Answer

A) True 
 B)False

Question 3

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters 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)  510F) All of the above
G) A) and E)

Question 4

Which is not a characteristic of exponential smoothing?

Accepted Answer

A)  Smooths random variations in the data
B)  Weights each historical value equally
C)  Provides an easily altered weighting scheme
D)  Directly accounts for forecast error
E)  Smooths real variations in the dataF) B) and C)
G) B) and E)

Question 5

Disadvantages of naive forecasts include:

Accepted Answer

A)  time-consuming to prepare
B)  it is expensive to use
C)  the technique is difficult to understand
D)  inability to provide highly accurate forecasts
E)  time to develop a forecast is lengthyF) B) and E)
G) A) and D)

Question 6

All of the following are used to measure forecast errors EXCEPT?

Accepted Answer

A)  Mean absolute difference (MA
D)  
B)  Mean weighted moving average (MWM
A)  
C)  Mean absolute percentage error (MAP
E)  
D)  Mean squared error (MS
E)  E) A) and D)
F) B) and C)

Question 7

The owner of Leisure Boutique in a local mall is forecasting this month's (October's) demand for one of her best-selling products based on the following historical data: the series displays a trend.  What is this month's forecast using the naive approach?

Accepted Answer

A)  100
B)  200
C)  130
D)  140
E)  120 The series has a trend.F) All of the above
G) C) and D)

Question 8

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data:  What is the forecast for this year using a three-year weighted moving average with weights of .5,.3,and .2?

Accepted Answer

A)  163
B)  180
C)  300
D)  420
E)  510F) All of the above
G) B) and C)

Question 9

Demand for the last four months was:
  (i)Predict demand for July using each of these methods:
(1)a 3-period moving average
(2)exponential smoothing with alpha equal to .20
(ii)If the naive approach had been used to predict demand for April through June,what would MAD have been for those months?
 11eab92b_c4ad_5f76_99e6_831dafbfb9c6

Accepted Answer

The answer of Demand for the last four months was:
...

Question 10

An advantage of a weighted moving average is that more recent experience is given more weight than less recent experience.

Accepted Answer

A) True 
 B)False

Question 11

The dean of a school of business is forecasting total student enrolment for this year's summer session classes based on the following historical data:  What is this year's forecast using the naive approach?

Accepted Answer

A)  2,000
B)  2,200
C)  2,800
D)  3,200
E)  3,000 There is a trend in the data set.F) A) and B)
G) A) and C)

Exam 3: Demand Forecasting

An advantage of a weighted moving average is that more recent experience is given more weight than less recent experience.

Correct Answer
verified

Which is not a characteristic of exponential smoothing?

Correct Answer
verified

The naive forecast can serve as a standard of comparison against which to judge the cost and accuracy of other techniques.

Correct Answer
verified

The owner of Leisure Boutique in a local mall is forecasting this month's (October's) demand for one of her best-selling products based on the following historical data: the series displays a trend. What is this month's forecast using the naive approach?

Correct Answer
verified

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data: What is the forecast for this year using the least squares trend line for these data?

Correct Answer
verified

Correct Answer
verified

All of the following are used to measure forecast errors EXCEPT?

Correct Answer
verified

Disadvantages of naive forecasts include:

Correct Answer
verified

Which of the following is not a requirement of a properly prepared forecast?

Correct Answer
verified

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data: What is the forecast for this year using a three-year weighted moving average with weights of .5,.3,and .2?

Correct Answer
verified

The dean of a school of business is forecasting total student enrolment for this year's summer session classes based on the following historical data: What is this year's forecast using the naive approach?

Correct Answer
verified

Exam 3: Demand Forecasting

An advantage of a weighted moving average is that more recent experience is given more weight than less recent experience.

Correct AnswerverifiedShow Answer

Which is not a characteristic of exponential smoothing?

Correct AnswerverifiedShow Answer

The naive forecast can serve as a standard of comparison against which to judge the cost and accuracy of other techniques.

Correct AnswerverifiedShow Answer

The owner of Leisure Boutique in a local mall is forecasting this month's (October's) demand for one of her best-selling products based on the following historical data: the series displays a trend. What is this month's forecast using the naive approach?

Correct AnswerverifiedShow Answer

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data: What is the forecast for this year using the least squares trend line for these data?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following are used to measure forecast errors EXCEPT?

Correct AnswerverifiedShow Answer

Disadvantages of naive forecasts include:

Correct AnswerverifiedShow Answer

Which of the following is not a requirement of a properly prepared forecast?

Correct AnswerverifiedShow Answer

The business analyst for Ace Business Machines,Inc.wants to forecast this year's demand for manual typewriters based on the following historical data: What is the forecast for this year using a three-year weighted moving average with weights of .5,.3,and .2?

Correct AnswerverifiedShow Answer

The dean of a school of business is forecasting total student enrolment for this year's summer session classes based on the following historical data: What is this year's forecast using the naive approach?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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