Question 1

Where there is a strong trend in sales:

Accepted Answer

A)  a trend adjusted forecast will give lower forecasting errors. 
B)  naïve forecasting methods show surprising accuracy. 
C)  percentage rate of change methods prove superior to trend forecast methods. 
D)  two of the above, and they are a and c. 
E)  two of the above, and they are b and c. 
A)  a trend adjusted forecast will give lower forecasting errors. 
B)  naïve forecasting methods show surprising accuracy. 
C)  percentage rate of change methods prove superior to trend forecast methods. 
D)  two of the above, and they are a and c. 
E)  two of the above, and they are b and c.

Question 2

As a sales analyst, if you wish to compare forecasting accuracy across several time periods, the percentage forecasting error formula [% error = (forecast - actual)/actual] should be used.

Accepted Answer

A) True 
 B)False

Question 3

Trend forecasting methods including the percentage rate of change and the unit rate of change:

Accepted Answer

A)  are widely used by managers. 
B)  can produce large forecasting errors when sales change direction. 
C)  are relatively easy to use. 
D)  are often combined to improve moving average and exponential smoothing forecasts. 
E)  All of the above. 
A)  are widely used by managers. 
B)  can produce large forecasting errors when sales change direction. 
C)  are relatively easy to use. 
D)  are often combined to improve moving average and exponential smoothing forecasts. 
E)  All of the above.

Question 4

The market share of an organization is measured by which of the following ratios?

Accepted Answer

A)  company sales to industry sales 
B)  company sales to company potential 
C)  company potential to market potential 
D)  company sales to market potential 
E)  none of the above 
A)  company sales to industry sales 
B)  company sales to company potential 
C)  company potential to market potential 
D)  company sales to market potential 
E)  none of the above

Question 5

Regression methods are generally more suitable for short range forecasts.

Accepted Answer

A) True 
 B)False

Question 6

The easiest way of estimating the number of buyers for a consumer product is:

Accepted Answer

A)  conducting a telephone survey of a representative population. 
B)  conducting a mail survey of representative population. 
C)  consulting secondary sources. 
D)  all of the above. 
E)  none of the above. 
A)  conducting a telephone survey of a representative population. 
B)  conducting a mail survey of representative population. 
C)  consulting secondary sources. 
D)  all of the above. 
E)  none of the above.

Question 7

Which of the following are not directly involved in estimating potential and forecasting sales?

Accepted Answer

A)  seasonally adjusting data. 
B)  selecting forecasting methods. 
C)  checking forecasting accuracy. 
D)  b and c of the above. 
E)  All of the above are involved. 
A)  seasonally adjusting data. 
B)  selecting forecasting methods. 
C)  checking forecasting accuracy. 
D)  b and c of the above. 
E)  All of the above are involved.

Question 8

MAPE stands for:

Accepted Answer

A)  Mean Absolute Percentage Error. 
B)  Mode Absolute Proportion Exponent. 
C)  Median Absolute Percentage Error. 
D)  More Advanced Programming Estimation. 
E)  Mean Advanced Programming Exponential. 
A)  Mean Absolute Percentage Error. 
B)  Mode Absolute Proportion Exponent. 
C)  Median Absolute Percentage Error. 
D)  More Advanced Programming Estimation. 
E)  Mean Advanced Programming Exponential.

Question 9

One of the difficult problems with linear regression is knowing how much past data to include in the calculation of the forecast.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following sales forecast methods uses historical data the least when making a forecast?

Accepted Answer

A)  multiple regression 
B)  sales force composite 
C)  linear regression 
D)  moving average 
E)  exponential smoothing 
A)  multiple regression 
B)  sales force composite 
C)  linear regression 
D)  moving average 
E)  exponential smoothing

Question 11

Given the following sales data, answer the following questions.
Mean of 3-Year Sales

278/12 = 23.16
-What is the seasonal index for quarter 1?

Accepted Answer

A)  .87 
B)  2.30 
C)  .38 
D)  .50 
A)  .87 
B)  2.30 
C)  .38 
D)  .50

Question 12

Managers rarely need forecasts for designing sales territories.

Accepted Answer

A) True 
 B)False

Question 13

Remember the Buying Power Index? Given Bloomington, IN has .00015% of the U.S. retail sales but only .0002% of the U.S. population, we can conclude the following:

Accepted Answer

A)  People are most likely driving in from smaller surrounding areas to shop in Bloomington. 
B)  The disposable personal income in Bloomington is well above the national average. 
C)  It is unlikely that people are driving from surrounding communities to shop in Bloomington. 
D)  Bloomington's percentage of U.S. retail sales multiplied by its percentage of the U.S. population determines its buying power index. 
E)  none of the above. 
A)  People are most likely driving in from smaller surrounding areas to shop in Bloomington. 
B)  The disposable personal income in Bloomington is well above the national average. 
C)  It is unlikely that people are driving from surrounding communities to shop in Bloomington. 
D)  Bloomington's percentage of U.S. retail sales multiplied by its percentage of the U.S. population determines its buying power index. 
E)  none of the above.

Question 14

What is ironic about the moving average method is that it really doesn't move.

Accepted Answer

A) True 
 B)False

Question 15

A minimum of two periods of data are needed to use the moving average method.

Accepted Answer

A) True 
 B)False

Question 16

The city of Sacramento has 0.165% of U.S. income, 0.166% of retail sales, and 0.142% of the U.S. population. Sacramento's buying power index is:

Accepted Answer

A)  0.825 
B)  0.498 
C)  0.284 
D)  0.161 
E)  none of the above 
A)  0.825 
B)  0.498 
C)  0.284 
D)  0.161 
E)  none of the above

Question 17

An important feature of the moving average technique is its ability to emphasize recent data and systematically discount old information.

Accepted Answer

A) True 
 B)False

Question 18

The major decision with exponential smoothing forecasts is determining the ideal number of periods to include in the average.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following forecasting methods tends to lag behind actual sales when there is a strong trend?

Accepted Answer

A)  naïve forecast 
B)  unit rate of change 
C)  moving average 
D)  both a and b are correct 
E)  both a and c are correct 
A)  naïve forecast 
B)  unit rate of change 
C)  moving average 
D)  both a and b are correct 
E)  both a and c are correct

Question 20

The sales budget is usually prepared before the sales forecast.

Accepted Answer

A) True 
 B)False

Where there is a strong trend in sales:

As a sales analyst, if you wish to compare forecasting accuracy across several time periods, the percentage forecasting error formula [% error = (forecast - actual)/actual] should be used.

Trend forecasting methods including the percentage rate of change and the unit rate of change:

The market share of an organization is measured by which of the following ratios?

Regression methods are generally more suitable for short range forecasts.

The easiest way of estimating the number of buyers for a consumer product is:

Which of the following are not directly involved in estimating potential and forecasting sales?

MAPE stands for:

One of the difficult problems with linear regression is knowing how much past data to include in the calculation of the forecast.

Which of the following sales forecast methods uses historical data the least when making a forecast?

Given the following sales data, answer the following questions. Mean of 3-Year Sales 278/12 = 23.16 -What is the seasonal index for quarter 1?

Managers rarely need forecasts for designing sales territories.

Remember the Buying Power Index? Given Bloomington, IN has .00015% of the U.S. retail sales but only .0002% of the U.S. population, we can conclude the following:

What is ironic about the moving average method is that it really doesn't move.

A minimum of two periods of data are needed to use the moving average method.

The city of Sacramento has 0.165% of U.S. income, 0.166% of retail sales, and 0.142% of the U.S. population. Sacramento's buying power index is:

An important feature of the moving average technique is its ability to emphasize recent data and systematically discount old information.

The major decision with exponential smoothing forecasts is determining the ideal number of periods to include in the average.

Which of the following forecasting methods tends to lag behind actual sales when there is a strong trend?

The sales budget is usually prepared before the sales forecast.

Introduction to Selling and Sales Management

Strategy and Sales Program Planning

Sales Opportunity Management

Account Relationship Management

Customer Interaction Management

Sales Force Organization

Recruiting and Selecting Personnel

Training

Leadership

Ethical Leadership

Motivating Salespeople

Compensating Salespeople

Evaluating Sales Force Performance

Territory Design

Sales Force Investment and Budgeting

Filters

Exam 14: Estimating Potentials and Forecasting Sales

Where there is a strong trend in sales:

As a sales analyst, if you wish to compare forecasting accuracy across several time periods, the percentage forecasting error formula [% error = (forecast - actual)/actual] should be used.

Trend forecasting methods including the percentage rate of change and the unit rate of change:

The market share of an organization is measured by which of the following ratios?

Regression methods are generally more suitable for short range forecasts.

The easiest way of estimating the number of buyers for a consumer product is:

Which of the following are not directly involved in estimating potential and forecasting sales?

MAPE stands for:

One of the difficult problems with linear regression is knowing how much past data to include in the calculation of the forecast.

Which of the following sales forecast methods uses historical data the least when making a forecast?

Given the following sales data, answer the following questions. Mean of 3-Year Sales 278/12 = 23.16 -What is the seasonal index for quarter 1?

Managers rarely need forecasts for designing sales territories.

Remember the Buying Power Index? Given Bloomington, IN has .00015% of the U.S. retail sales but only .0002% of the U.S. population, we can conclude the following:

What is ironic about the moving average method is that it really doesn't move.

A minimum of two periods of data are needed to use the moving average method.

The city of Sacramento has 0.165% of U.S. income, 0.166% of retail sales, and 0.142% of the U.S. population. Sacramento's buying power index is:

An important feature of the moving average technique is its ability to emphasize recent data and systematically discount old information.

The major decision with exponential smoothing forecasts is determining the ideal number of periods to include in the average.

Which of the following forecasting methods tends to lag behind actual sales when there is a strong trend?

The sales budget is usually prepared before the sales forecast.

Introduction to Selling and Sales Management

Strategy and Sales Program Planning

Sales Opportunity Management

Account Relationship Management

Customer Interaction Management

Sales Force Organization

Recruiting and Selecting Personnel

Training

Leadership

Ethical Leadership

Motivating Salespeople

Compensating Salespeople

Evaluating Sales Force Performance

Territory Design

Sales Force Investment and Budgeting

Filters