Question 1

How do we interpret an r value that is close to +1?

Accepted Answer

There is a strong po

Question 2

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

Accepted Answer

correlatio

Question 3

Discuss forecast error.

Accepted Answer

It is inevitable that forecasts almost a

Question 4

Which one of the following statements about forecasting is FALSE?

Accepted Answer

A)  The method for incorporating a trend in an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean, one for the trend, and one for the error. 
B)  The cumulative sum of forecast errors (CF
E)  is useful in measuring the bias in a forecast. 
C)  The standard deviation and the mean absolute deviation measure the dispersion of forecast errors. 
D)  A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time. 
A)  The method for incorporating a trend in an exponentially smoothed forecast requires the estimation of three smoothing constants: one for the mean, one for the trend, and one for the error. 
B)  The cumulative sum of forecast errors (CF
E)  is useful in measuring the bias in a forecast. 
C)  The standard deviation and the mean absolute deviation measure the dispersion of forecast errors. 
D)  A tracking signal is a measure that indicates whether a method of forecasting has any built-in biases over a period of time.

Question 5

One of the basic time series patterns is random.

Accepted Answer

A) True 
 B)False

Question 6

How are forecast errors classified?

Accepted Answer

Forecast errors are classified as either

Question 7

changes in the dependent variable must take place with sufficient lead time before the associated change in the independent variables,for causal model to be useful as a forecasting tool.

Accepted Answer

A) True 
 B)False

Question 8

________ methods use historical data on independent variables to predict demand.

Accepted Answer

The answer of ________ methods use historical data on independent...

Question 9

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

Question 10

Luigui,who has been operating a very successful Italian restaurant in downtown Toronto,has had great success using forecasting techniques to predict demand for the main menu items ever since opening day.His forecast for last month was grossly inaccurate and so far this month,his forecast appears to be just as bad as last months.It's already time to prepare the forecast for next month,what should he do about his model?

Accepted Answer

The answer depends on whether Luigui bel

Question 11

A backorder is the same as backlog.

Accepted Answer

A) True 
 B)False

Question 12

Use the following quarterly data (sales in units)to develop the seasonal indexes:
 $$\begin{array} { | c | r | r | r | } 
\hline \text { Quarter } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\hline 1 & 51 & 62 & 74 \
2 & 103 & 124 & 133 \
3 & 172 & 199 & 222 \
4 & 296 & 332 & 367 \
\text { Total } & 622 & 717 & 796 \
\hline
\end{array}$$ 
The manager predicts that the demand for next year will be 900.What are the quarterly forecasts for next year?

Accepted Answer

None

Question 13

The moving average gives a forecast of the mean value of demand in future periods,if there is no noticeable trend or seasonality in the data.

Accepted Answer

A) True 
 B)False

Question 14

Describe the exponential smoothing method.

Accepted Answer

A weighted moving average meth

Question 15

The multiplicative seasonal method is most appropriate when the

Accepted Answer

A)  seasonal influence is a constant regardless of the level of demand. 
B)  seasonal influence is erratic, changing in the timing of the peaks and valleys. 
C)  seasonal influence is dependent on the level of demand. 
D)  demand each period is a constant multiple of the demand in the previous period. 
A)  seasonal influence is a constant regardless of the level of demand. 
B)  seasonal influence is erratic, changing in the timing of the peaks and valleys. 
C)  seasonal influence is dependent on the level of demand. 
D)  demand each period is a constant multiple of the demand in the previous period.

Question 16

In developing a regression equation of the form Y = a + bX,the intent is to use values of X to predict the likely outcome for the dependent variable Y.

Accepted Answer

A) True 
 B)False

Question 17

Forecasts will always be below or above the actual demand where a trend is present,unless exponential smoothing with two components is applied.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

The advantage of the simple moving average forecast is that it allows you to emphasize recent demand over earlier demand.

Accepted Answer

A) True 
 B)False

Question 20

A backlog is an accumulation of customer orders that a manufacturer has promised for delivery at some future date.

Accepted Answer

A) True 
 B)False

Exam 10: Managing Demand and Forecasting

How do we interpret an r value that is close to +1?

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

Discuss forecast error.

Which one of the following statements about forecasting is FALSE?

One of the basic time series patterns is random.

How are forecast errors classified?

changes in the dependent variable must take place with sufficient lead time before the associated change in the independent variables,for causal model to be useful as a forecasting tool.

________ methods use historical data on independent variables to predict demand.

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.

A backorder is the same as backlog.

Use the following quarterly data (sales in units)to develop the seasonal indexes: Quarter Year 1 Year 2 Year 3 1 51 62 74 2 103 124 133 3 172 199 222 4 296 332 367 Total 622 717 796 The manager predicts that the demand for next year will be 900.What are the quarterly forecasts for next year?

The moving average gives a forecast of the mean value of demand in future periods,if there is no noticeable trend or seasonality in the data.

Describe the exponential smoothing method.

The multiplicative seasonal method is most appropriate when the

In developing a regression equation of the form Y = a + bX,the intent is to use values of X to predict the likely outcome for the dependent variable Y.

Forecasts will always be below or above the actual demand where a trend is present,unless exponential smoothing with two components is applied.

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

The advantage of the simple moving average forecast is that it allows you to emphasize recent demand over earlier demand.

A backlog is an accumulation of customer orders that a manufacturer has promised for delivery at some future date.

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