Question 1

Exponential smoothing prevents overreaction to extremes in the actual observed values.

Accepted Answer

A) True 
 B)False  True

Question 2

Subjective forecasting models are best characterized by:

Accepted Answer

A)  the use of experts. 
B)  the use of opinion as a basis for a forecast. 
C)  the absence of data manipulation. 
D)  the use of simultaneous equations. 
A)  the use of experts. 
B)  the use of opinion as a basis for a forecast. 
C)  the absence of data manipulation. 
D)  the use of simultaneous equations. B

Question 3

Seasonal adjustment involves the deseasonalization of data in a given cycle after smoothing.

Accepted Answer

A) True 
 B)False  False

Question 4

The trade-off to be made with respect to accuracy is between the costs of inaccurate forecasts and the costs of increasing the accuracy of forecasts.

Accepted Answer

A) True 
 B)False

Question 5

The cost of formulating, developing, and testing regression models, plus the expertise required to interpret results, often dictates the use of this model only for medium-term or long-term forecasting.

Accepted Answer

A) True 
 B)False

Question 6

Econometric models are basically regression models that involve a system of equations.

Accepted Answer

A) True 
 B)False

Question 7

In the Delphi method, the opinions of experts are collected, then the analyst resolves differences of opinion to arrive at a consensus.

Accepted Answer

A) True 
 B)False

Question 8

Both measures of forecast accuracy, MAD and MSD, give equal weight to all forecasting errors.

Accepted Answer

A) True 
 B)False

Question 9

The key feature of the historical analogy method is that it assumes some future event is related to the occurrence of an earlier event.

Accepted Answer

A) True 
 B)False

Question 10

The ___________ forecasting method requires the most computer power.

Accepted Answer

A)  econometric 
B)  cross-impact 
C)  regression 
D)  historical analogy 
A)  econometric 
B)  cross-impact 
C)  regression 
D)  historical analogy

Question 11

The accuracy of a time-series model is dependent upon:

Accepted Answer

A)  the nature of past data. 
B)  the weight given to past data. 
C)  the treatment of seasonality and trend. 
D)  the assumption that the future is a projection of the past. 
A)  the nature of past data. 
B)  the weight given to past data. 
C)  the treatment of seasonality and trend. 
D)  the assumption that the future is a projection of the past.

Question 12

Costs for preparing time-series forecasts generally are lower than for other models.

Accepted Answer

A) True 
 B)False

Question 13

Demand for hotel services will require the use of which one of the following forecasting models:

Accepted Answer

A)  subjective and causal. 
B)  subjective and time series. 
C)  time series and causal. 
D)  only time series. 
A)  subjective and causal. 
B)  subjective and time series. 
C)  time series and causal. 
D)  only time series.

Question 14

All but one of the following are characteristics of the moving-average model:

Accepted Answer

A)  very low relative cost. 
B)  short term forecast horizon. 
C)  uses all past data in forecast. 
D)  used for demand forecastsing. 
A)  very low relative cost. 
B)  short term forecast horizon. 
C)  uses all past data in forecast. 
D)  used for demand forecastsing.

Question 15

In regression models, the variable of interest (being forecast) is called a(an):

Accepted Answer

A)  defining variable. 
B)  independent variable. 
C)  basic variable. 
D)  dependent variable. 
A)  defining variable. 
B)  independent variable. 
C)  basic variable. 
D)  dependent variable.

Question 16

Because of the nontangible nature of a service, forecasting does not play as important a role in service operations as in manufacturing operations.

Accepted Answer

A) True 
 B)False

Question 17

Long-term forecasts do not deal with predictions for:

Accepted Answer

A)  new services. 
B)  changes in mix of services. 
C)  overtime or temporary labor requirements. 
D)  process technology. 
A)  new services. 
B)  changes in mix of services. 
C)  overtime or temporary labor requirements. 
D)  process technology.

Question 18

Exponential smoothing uses a feedback control mechanism because:

Accepted Answer

A)  $\alpha  $ is less than 1. 
B)  calculations are based on modifying the previous smooth value. 
C)  the calculation contains the forecast error. 
D)  the weights given to past data are exponentially distributed. 
A)  $\alpha  $ is less than 1. 
B)  calculations are based on modifying the previous smooth value. 
C)  the calculation contains the forecast error. 
D)  the weights given to past data are exponentially distributed.

Question 19

The greatest advantage of subjective techniques like Delphi and cross-impact analyses, is that the methods are fairly standardized and do not require much expertise in actual use.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are forecasting models, except:

Accepted Answer

A)  subjective. 
B)  objective. 
C)  causal. 
D)  time series. 
A)  subjective. 
B)  objective. 
C)  causal. 
D)  time series.

Exponential smoothing prevents overreaction to extremes in the actual observed values.

Subjective forecasting models are best characterized by:

Seasonal adjustment involves the deseasonalization of data in a given cycle after smoothing.

The trade-off to be made with respect to accuracy is between the costs of inaccurate forecasts and the costs of increasing the accuracy of forecasts.

The cost of formulating, developing, and testing regression models, plus the expertise required to interpret results, often dictates the use of this model only for medium-term or long-term forecasting.

Econometric models are basically regression models that involve a system of equations.

In the Delphi method, the opinions of experts are collected, then the analyst resolves differences of opinion to arrive at a consensus.

Both measures of forecast accuracy, MAD and MSD, give equal weight to all forecasting errors.

The key feature of the historical analogy method is that it assumes some future event is related to the occurrence of an earlier event.

The ___________ forecasting method requires the most computer power.

The accuracy of a time-series model is dependent upon:

Costs for preparing time-series forecasts generally are lower than for other models.

Demand for hotel services will require the use of which one of the following forecasting models:

All but one of the following are characteristics of the moving-average model:

In regression models, the variable of interest (being forecast) is called a(an):

Because of the nontangible nature of a service, forecasting does not play as important a role in service operations as in manufacturing operations.

Long-term forecasts do not deal with predictions for:

Exponential smoothing uses a feedback control mechanism because:

The greatest advantage of subjective techniques like Delphi and cross-impact analyses, is that the methods are fairly standardized and do not require much expertise in actual use.

All of the following are forecasting models, except:

The Service Economy

Service Strategy

The Service Encounter

Supporting Facility and Process Flows

Service Quality

Process Improvement

Service Facility Location

Service Supply Relationships

Globalization of Services

Managing Capacity and Demand

Managing Waiting Lines

Capacity Planning and Queuing Models

Managing Service Inventory

Managing Service Projects

Filters

Exam 14: Forecasting Demand for Services

Exponential smoothing prevents overreaction to extremes in the actual observed values.

Subjective forecasting models are best characterized by:

Seasonal adjustment involves the deseasonalization of data in a given cycle after smoothing.

The trade-off to be made with respect to accuracy is between the costs of inaccurate forecasts and the costs of increasing the accuracy of forecasts.

The cost of formulating, developing, and testing regression models, plus the expertise required to interpret results, often dictates the use of this model only for medium-term or long-term forecasting.

Econometric models are basically regression models that involve a system of equations.

In the Delphi method, the opinions of experts are collected, then the analyst resolves differences of opinion to arrive at a consensus.

Both measures of forecast accuracy, MAD and MSD, give equal weight to all forecasting errors.

The key feature of the historical analogy method is that it assumes some future event is related to the occurrence of an earlier event.

The ___________ forecasting method requires the most computer power.

The accuracy of a time-series model is dependent upon:

Costs for preparing time-series forecasts generally are lower than for other models.

Demand for hotel services will require the use of which one of the following forecasting models:

All but one of the following are characteristics of the moving-average model:

In regression models, the variable of interest (being forecast) is called a(an):

Because of the nontangible nature of a service, forecasting does not play as important a role in service operations as in manufacturing operations.

Long-term forecasts do not deal with predictions for:

Exponential smoothing uses a feedback control mechanism because:

The greatest advantage of subjective techniques like Delphi and cross-impact analyses, is that the methods are fairly standardized and do not require much expertise in actual use.

All of the following are forecasting models, except:

The Service Economy

Service Strategy

The Service Encounter

Supporting Facility and Process Flows

Service Quality

Process Improvement

Service Facility Location

Service Supply Relationships

Globalization of Services

Managing Capacity and Demand

Managing Waiting Lines

Capacity Planning and Queuing Models

Managing Service Inventory

Managing Service Projects

Filters