Question 1

The Buying Power Index includes such factors as disposable personal income, retail sales, and populations.

Accepted Answer

A) True 
 B)False

Question 2

The jury of executive opinion method can be done fairly quickly and allows the inclusion of many subjective factors.

Accepted Answer

A) True 
 B)False

Question 3

With leading indicators:

Accepted Answer

A)  general time series are used to confirm trends in sales. 
B)  it is important to find an independent time series that is closely related to company sales. 
C)  it is difficult to convert changes in a leading indicator into a company sales forecast. 
D)  you want a series that is available several months in advance of actual company sales. 
E)  Answers b and d are correct. 
A)  general time series are used to confirm trends in sales. 
B)  it is important to find an independent time series that is closely related to company sales. 
C)  it is difficult to convert changes in a leading indicator into a company sales forecast. 
D)  you want a series that is available several months in advance of actual company sales. 
E)  Answers b and d are correct.

Question 4

When there is a strong trend in a time series, a moving average forecast always lags behind the trend; that is, it dampens the effect of a strong trend.

Accepted Answer

A) True 
 B)False

Question 5

With the sales force composite method, salespeople project sales volumes for customers in their own territory, and then the aggregated estimates are reviewed by higher management.

Accepted Answer

A) True 
 B)False

Question 6

When using the trend projection method, the analyst estimates trend from past data and adds this figure to current sales to obtain a forecast.

Accepted Answer

A) True 
 B)False

Question 7

"Sales potential" represents the sales volume a firm expects to achieve.

Accepted Answer

A) True 
 B)False

Question 8

The jury of executive opinion:

Accepted Answer

A)  is rarely used by today's business firms. 
B)  is one of the faster methods of forecasting sales. 
C)  relies on customer surveys. 
D)  is the most accurate sales forecasting method. 
E)  both a and c are correct. 
A)  is rarely used by today's business firms. 
B)  is one of the faster methods of forecasting sales. 
C)  relies on customer surveys. 
D)  is the most accurate sales forecasting method. 
E)  both a and c are correct.

Question 9

The estimation of sales potential can be made using such things as the Buying Power Index and NAICS codes.

Accepted Answer

A) True 
 B)False

Question 10

Actual industry sales are usually less than market potential.

Accepted Answer

A) True 
 B)False

Question 11

When using moving averages it is important to determine the ideal number of periods to use.

Accepted Answer

A) True 
 B)False

Question 12

The __________ method is based on the assumption that sales follow a linear pattern. The major problem with this method, however, is knowing how much past data to include in the calculation of the forecast.

Accepted Answer

A)  exponential smoothing 
B)  regression 
C)  moving average 
D)  percentage rate of change 
E)  none of the above 
A)  exponential smoothing 
B)  regression 
C)  moving average 
D)  percentage rate of change 
E)  none of the above

Question 13

An important aspect of exponential smoothing is its ability to emphasize recent data and systematically discount old information.

Accepted Answer

A) True 
 B)False

Question 14

The Buying Power Index expresses sales potential in:

Accepted Answer

A)  relative terms. 
B)  average terms. 
C)  absolute terms. 
D)  real terms. 
E)  none of the above. 
A)  relative terms. 
B)  average terms. 
C)  absolute terms. 
D)  real terms. 
E)  none of the above.

Question 15

Time series projections can often be improved by making adjustments to eliminate monthly or quarterly effects. The adjustments are best known as:

Accepted Answer

A)  seasonal adjustments. 
B)  temporary adjustments. 
C)  general adjustments. 
D)  counter adjustments. 
E)  none of the above. 
A)  seasonal adjustments. 
B)  temporary adjustments. 
C)  general adjustments. 
D)  counter adjustments. 
E)  none of the above.

Question 16

The Buying Power Index expresses sales potentials in absolute rather than relative terms.

Accepted Answer

A) True 
 B)False

Question 17

Actual sales in quarters 1 and 2 are 50 and 60, respectively. What is the percentage forecasting error for quarter 2 using a naïve approach?

Accepted Answer

A)  83.3% 
B)  20.9% 
C)  16.7% 
D)  12.5% 
E)  none of the above 
A)  83.3% 
B)  20.9% 
C)  16.7% 
D)  12.5% 
E)  none of the above

Question 18

Leading indicators are typically better than other forecasting techniques in predicting turns in a series of sales figures.

Accepted Answer

A) True 
 B)False

Question 19

Simple linear regression:

Accepted Answer

A)  can be done using some pocket calculators. 
B)  is based on the assumption that sales follow a cyclical pattern. 
C)  uses several independent variables to forecast sales. 
D)  tends to lag behind when there is a strong trend. 
E)  both c and d are correct. 
A)  can be done using some pocket calculators. 
B)  is based on the assumption that sales follow a cyclical pattern. 
C)  uses several independent variables to forecast sales. 
D)  tends to lag behind when there is a strong trend. 
E)  both c and d are correct.

Question 20

When forecasting sales for a particular product, all of the following are possible leading indicators except:

Accepted Answer

A)  new building permits. 
B)  historical data for that product. 
C)  Dow Jones industrial average. 
D)  new orders for durable goods. 
E)  all of the above are leading indicators. 
A)  new building permits. 
B)  historical data for that product. 
C)  Dow Jones industrial average. 
D)  new orders for durable goods. 
E)  all of the above are leading indicators.

The Buying Power Index includes such factors as disposable personal income, retail sales, and populations.

The jury of executive opinion method can be done fairly quickly and allows the inclusion of many subjective factors.

With leading indicators:

When there is a strong trend in a time series, a moving average forecast always lags behind the trend; that is, it dampens the effect of a strong trend.

With the sales force composite method, salespeople project sales volumes for customers in their own territory, and then the aggregated estimates are reviewed by higher management.

When using the trend projection method, the analyst estimates trend from past data and adds this figure to current sales to obtain a forecast.

"Sales potential" represents the sales volume a firm expects to achieve.

The jury of executive opinion:

The estimation of sales potential can be made using such things as the Buying Power Index and NAICS codes.

Actual industry sales are usually less than market potential.

When using moving averages it is important to determine the ideal number of periods to use.

The __________ method is based on the assumption that sales follow a linear pattern. The major problem with this method, however, is knowing how much past data to include in the calculation of the forecast.

An important aspect of exponential smoothing is its ability to emphasize recent data and systematically discount old information.

The Buying Power Index expresses sales potential in:

Time series projections can often be improved by making adjustments to eliminate monthly or quarterly effects. The adjustments are best known as:

The Buying Power Index expresses sales potentials in absolute rather than relative terms.

Actual sales in quarters 1 and 2 are 50 and 60, respectively. What is the percentage forecasting error for quarter 2 using a naïve approach?

Leading indicators are typically better than other forecasting techniques in predicting turns in a series of sales figures.

Simple linear regression:

When forecasting sales for a particular product, all of the following are possible leading indicators except:

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

The Buying Power Index includes such factors as disposable personal income, retail sales, and populations.

The jury of executive opinion method can be done fairly quickly and allows the inclusion of many subjective factors.

With leading indicators:

When there is a strong trend in a time series, a moving average forecast always lags behind the trend; that is, it dampens the effect of a strong trend.

With the sales force composite method, salespeople project sales volumes for customers in their own territory, and then the aggregated estimates are reviewed by higher management.

When using the trend projection method, the analyst estimates trend from past data and adds this figure to current sales to obtain a forecast.

"Sales potential" represents the sales volume a firm expects to achieve.

The jury of executive opinion:

The estimation of sales potential can be made using such things as the Buying Power Index and NAICS codes.

Actual industry sales are usually less than market potential.

When using moving averages it is important to determine the ideal number of periods to use.

The __________ method is based on the assumption that sales follow a linear pattern. The major problem with this method, however, is knowing how much past data to include in the calculation of the forecast.

An important aspect of exponential smoothing is its ability to emphasize recent data and systematically discount old information.

The Buying Power Index expresses sales potential in:

Time series projections can often be improved by making adjustments to eliminate monthly or quarterly effects. The adjustments are best known as:

The Buying Power Index expresses sales potentials in absolute rather than relative terms.

Actual sales in quarters 1 and 2 are 50 and 60, respectively. What is the percentage forecasting error for quarter 2 using a naïve approach?

Leading indicators are typically better than other forecasting techniques in predicting turns in a series of sales figures.

Simple linear regression:

When forecasting sales for a particular product, all of the following are possible leading indicators except:

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