Question 1

The naive approach to forecasting requires a linear trend line.

Accepted Answer

A) True 
 B)False

Question 2

Forecasting techniques generally assume an existing causal system that will continue to exist in the future.

Accepted Answer

A) True 
 B)False

Question 3

Putting forecast errors into perspective is best done using

Accepted Answer

A) exponential smoothing. 
B) MAPE. 
C) linear decision rules. 
D) MAD. 
E) hindsight. 
A) exponential smoothing. 
B) MAPE. 
C) linear decision rules. 
D) MAD. 
E) hindsight.

Question 4

Forecasts based on time-series (historical)data are referred to as associative forecasts.

Accepted Answer

A) True 
 B)False

Question 5

Exponential smoothing is a form of weighted averaging.

Accepted Answer

A) True 
 B)False

Question 6

Averaging techniques are useful for:

Accepted Answer

A) distinguishing between random and nonrandom variations. 
B) smoothing out fluctuations in time series. 
C) eliminating historical data. 
D) providing accuracy in forecasts. 
E) average people. 
A) distinguishing between random and nonrandom variations. 
B) smoothing out fluctuations in time series. 
C) eliminating historical data. 
D) providing accuracy in forecasts. 
E) average people.

Question 7

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data:
 
What is the annual rate of change (slope)of the least squares trend line for these data?

Accepted Answer

A) 0 
B) 200 
C) 400 
D) 180 
E) 360 
A) 0 
B) 200 
C) 400 
D) 180 
E) 360

Question 8

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data:
 
What is the forecast for this year using exponential smoothing with alpha = 0.4, if the forecast for two years ago was 750?

Accepted Answer

A) 163 
B) 180 
C) 300 
D) 420 
E) 510 
A) 163 
B) 180 
C) 300 
D) 420 
E) 510

Question 9

In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naive forecast would yield.

Accepted Answer

A) True 
 B)False

Question 10

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast.

Accepted Answer

A) True 
 B)False

Question 11

Given an actual demand of 105, a forecasted value of 97, and an alpha of 0.4, the simple exponential smoothing forecast for the next period would be:

Accepted Answer

A) 80.8. 
B) 93.8. 
C) 100.2. 
D) 101.8. 
E) 108.2. 
A) 80.8. 
B) 93.8. 
C) 100.2. 
D) 101.8. 
E) 108.2.

Question 12

Professor Very Busy needs to allocate time next week to include time for office hours. He needs to forecast the number of students who will seek appointments. He has gathered the following data:
 
What is this week's forecast using exponential smoothing with alpha = 0.2, if the forecast for two weeks ago was 90?

Accepted Answer

A) 49 
B) 50 
C) 52 
D) 65 
E) 78 
A) 49 
B) 50 
C) 52 
D) 65 
E) 78

Question 13

Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: w t-4 = 0.1, w t-3 = 0.2, w t-2 = 0.3 and w t-1 = 0.4. Demand observed in the previous four periods was as follows: A t-4 = 380, A t-3 = 410, A t-2 = 390, and A t-1 = 400. What will be the demand forecast for period t?

Accepted Answer

A) 402 
B) 397 
C) 399 
D) 393 
E) 403 
A) 402 
B) 397 
C) 399 
D) 393 
E) 403

Question 14

Which of the following is the most valuable piece of information the sales force can bring into forecasting situations?

Accepted Answer

A) what customers are most likely to do in the future 
B) what customers most want to do in the future 
C) what plans customers are considering for the future 
D) whether customers are satisfied or dissatisfied with their performance in the past 
E) what the salesperson's appropriate sales quota should be 
A) what customers are most likely to do in the future 
B) what customers most want to do in the future 
C) what plans customers are considering for the future 
D) whether customers are satisfied or dissatisfied with their performance in the past 
E) what the salesperson's appropriate sales quota should be

Question 15

The dean of a school of business is forecasting total student enrollment 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) 3,000 
E) 3,200 
A) 2,000 
B) 2,200 
C) 2,800 
D) 3,000 
E) 3,200

Question 16

Forecasts based on an average tend to exhibit less variability than the original data.

Accepted Answer

A) True 
 B)False

Question 17

In order to update a moving average forecast, the values of each data point in the average must be known.

Accepted Answer

A) True 
 B)False

Question 18

The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's)demand for the one new tanning booth based on the following historical data:
 
What is this month's forecast using a four-month weighted moving average with weights of 0.4, 0.3, 0.2, and 0.1?

Accepted Answer

A) 120 
B) 129 
C) 141 
D) 135 
E) 140 
A) 120 
B) 129 
C) 141 
D) 135 
E) 140

Question 19

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Accepted Answer

A) 0 
B) 0.01 
C) 0.1 
D) 0.5 
E) 1.0 
A) 0 
B) 0.01 
C) 0.1 
D) 0.5 
E) 1.0

Question 20

When choosing a forecasting technique, a critical trade-off that must be considered is that between:

Accepted Answer

A) time series and associative. 
B) seasonality and cyclicality. 
C) length and duration. 
D) simplicity and complexity. 
E) cost and accuracy. 
A) time series and associative. 
B) seasonality and cyclicality. 
C) length and duration. 
D) simplicity and complexity. 
E) cost and accuracy.

The naive approach to forecasting requires a linear trend line.

Forecasting techniques generally assume an existing causal system that will continue to exist in the future.

Putting forecast errors into perspective is best done using

Forecasts based on time-series (historical)data are referred to as associative forecasts.

Exponential smoothing is a form of weighted averaging.

Averaging techniques are useful for:

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: What is the annual rate of change (slope)of the least squares trend line for these data?

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using exponential smoothing with alpha = 0.4, if the forecast for two years ago was 750?

In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naive forecast would yield.

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast.

Given an actual demand of 105, a forecasted value of 97, and an alpha of 0.4, the simple exponential smoothing forecast for the next period would be:

Which of the following is the most valuable piece of information the sales force can bring into forecasting situations?

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

Forecasts based on an average tend to exhibit less variability than the original data.

In order to update a moving average forecast, the values of each data point in the average must be known.

The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's)demand for the one new tanning booth based on the following historical data: What is this month's forecast using a four-month weighted moving average with weights of 0.4, 0.3, 0.2, and 0.1?

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

When choosing a forecasting technique, a critical trade-off that must be considered is that between:

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

Inventory Management

MRP and ERP

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters

Exam 3: Forecasting

The naive approach to forecasting requires a linear trend line.

Forecasting techniques generally assume an existing causal system that will continue to exist in the future.

Putting forecast errors into perspective is best done using

Forecasts based on time-series (historical)data are referred to as associative forecasts.

Exponential smoothing is a form of weighted averaging.

Averaging techniques are useful for:

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: What is the annual rate of change (slope)of the least squares trend line for these data?

The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based on the following historical data: What is the forecast for this year using exponential smoothing with alpha = 0.4, if the forecast for two years ago was 750?

In exponential smoothing, an alpha of 1.0 will generate the same forecast that a naive forecast would yield.

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast.

Given an actual demand of 105, a forecasted value of 97, and an alpha of 0.4, the simple exponential smoothing forecast for the next period would be:

Which of the following is the most valuable piece of information the sales force can bring into forecasting situations?

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

Forecasts based on an average tend to exhibit less variability than the original data.

In order to update a moving average forecast, the values of each data point in the average must be known.

The owner of Darkest Tans Unlimited in a local mall is forecasting this month's (October's)demand for the one new tanning booth based on the following historical data: What is this month's forecast using a four-month weighted moving average with weights of 0.4, 0.3, 0.2, and 0.1?

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

When choosing a forecasting technique, a critical trade-off that must be considered is that between:

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Product and Service Design

Strategic Capacity Planning for Products and Services

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

Inventory Management

MRP and ERP

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Filters