Question 1

Explain, in your own words, the meaning of the coefficient of determination.

Accepted Answer

The coefficient of determinati

Question 2

Describe the three forecasting time horizons and their use.

Accepted Answer

Forecasting time horizons are: short ran

Question 3

Which of the following statements comparing the weighted moving average technique and exponential smoothing is true?

Accepted Answer

A)  Exponential smoothing is more easily used in combination with the Delphi method. 
B)  More emphasis can be placed on recent values using the weighted moving average. 
C)  Exponential smoothing is considerably more difficult to implement on a computer. 
D)  Exponential smoothing typically requires less record keeping of past data. 
E)  Exponential smoothing allows one to develop forecasts for multiple periods, whereas weighted moving averages does not. 
A)  Exponential smoothing is more easily used in combination with the Delphi method. 
B)  More emphasis can be placed on recent values using the weighted moving average. 
C)  Exponential smoothing is considerably more difficult to implement on a computer. 
D)  Exponential smoothing typically requires less record keeping of past data. 
E)  Exponential smoothing allows one to develop forecasts for multiple periods, whereas weighted moving averages does not.

Question 4

Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors?

Accepted Answer

A)  0.10 
B)  0.20 
C)  0.40 
D)  0.80 
E)  cannot be determined 
A)  0.10 
B)  0.20 
C)  0.40 
D)  0.80 
E)  cannot be determined

Question 5

__________ is a measure of overall forecast error for a model.

Accepted Answer

MAD or Mea

Question 6

A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7?

Accepted Answer

A)  23.2 
B)  25.3 
C)  27.4 
D)  40.0 
E)  cannot be determined 
A)  23.2 
B)  25.3 
C)  27.4 
D)  40.0 
E)  cannot be determined

Question 7

In time series, which of the following cannot be predicted?

Accepted Answer

A)  large increases in demand 
B)  cycles 
C)  seasonal fluctuations 
D)  random fluctuations 
E)  large decreases in demand 
A)  large increases in demand 
B)  cycles 
C)  seasonal fluctuations 
D)  random fluctuations 
E)  large decreases in demand

Question 8

__________ are useful if we can assume that market demands will stay fairly steady over time.

Accepted Answer

The answer of __________ are useful if we can assume...

Question 9

What is the approximate forecast for May using a four-month moving average?

Accepted Answer

A)  38 
B)  42 
C)  43 
D)  44 
E)  47 
A)  38 
B)  42 
C)  43 
D)  44 
E)  47

Question 10

Weekly sales of copy paper at Cubicle Suppliers are in the table below. Compute a three-period moving average and a four-period moving average for weeks 5, 6, and 7. Compute MAD for each forecast. Which model is more accurate? Forecast week 8 with the more accurate method.
Week Sales (cases)
1 17
2 21
3 27
4 31
5 19
6 17
7 21

Accepted Answer

@#IMG-DLM& The four-week movin

Question 11

Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning.

Accepted Answer

A) True 
 B)False

Question 12

Weekly sales of ten-grain bread at the local organic food market are in the table below. Based on this data, forecast week 9 using a five-week moving average.
Week Sales
1 415
2 389
3 420
4 382
5 410
6 432
7 405
8 421

Accepted Answer

(382+410+4

Question 13

Focus forecasting tries a variety of computer models and selects the best one for a particular application.

Accepted Answer

A) True 
 B)False

Question 14

The smoothing constant is a weighting factor used in __________.

Accepted Answer

exponentia

Question 15

What is a time-series forecasting model?

Accepted Answer

A time-series forecasting mode

Question 16

An innovative restaurateur owns and operates a dozen "Ultimate Low-Carb" restaurants in northern Arkansas. His signature item is a cheese-encrusted beef medallion wrapped in lettuce. Sales (X, in millions of dollars) is related to Profits (Y, in hundreds of thousands of dollars) by the regression equation Y = 8.21 + 0.76 X. What is your forecast of profit for a store with sales of $40 million? $50 million?

Accepted Answer

Students must recognize that sales is th

Question 17

List and briefly describe the three major types of forecasts.

Accepted Answer

The three types are economic, technologi

Question 18

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every unit of time that passes.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

Accepted Answer

A)  One constant is positive, while the other is negative. 
B)  They are called MAD and cumulative error. 
C)  Alpha is always smaller than beta. 
D)  One constant smoothes the regression intercept, whereas the other smoothes the regression slope. 
E)  Their values are determined independently. 
A)  One constant is positive, while the other is negative. 
B)  They are called MAD and cumulative error. 
C)  Alpha is always smaller than beta. 
D)  One constant smoothes the regression intercept, whereas the other smoothes the regression slope. 
E)  Their values are determined independently.

Question 20

Time-series data may exhibit which of the following behaviors?

Accepted Answer

A)  trend 
B)  random variations 
C)  seasonality 
D)  cycles 
E)  They may exhibit all of the above. 
A)  trend 
B)  random variations 
C)  seasonality 
D)  cycles 
E)  They may exhibit all of the above.

Exam 4: Forecasting

Explain, in your own words, the meaning of the coefficient of determination.

Describe the three forecasting time horizons and their use.

Which of the following statements comparing the weighted moving average technique and exponential smoothing is true?

Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors?

__________ is a measure of overall forecast error for a model.

A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7?

In time series, which of the following cannot be predicted?

__________ are useful if we can assume that market demands will stay fairly steady over time.

What is the approximate forecast for May using a four-month moving average?

Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning.

Weekly sales of ten-grain bread at the local organic food market are in the table below. Based on this data, forecast week 9 using a five-week moving average. Week Sales 1 415 2 389 3 420 4 382 5 410 6 432 7 405 8 421

Focus forecasting tries a variety of computer models and selects the best one for a particular application.

The smoothing constant is a weighting factor used in __________.

What is a time-series forecasting model?

List and briefly describe the three major types of forecasts.

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every unit of time that passes.

Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

Time-series data may exhibit which of the following behaviors?

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