Question 1

The smoothing constant is a weighting factor used in ________.

Accepted Answer

exponentia

Question 2

An approach to exponential smoothing in which the smoothing constant is automatically changed to keep errors to a minimum is called ________.

Accepted Answer

The answer of An approach to exponential smoothing in which...

Question 3

A naïve forecast for September sales of a product would be equal to the sales in August.

Accepted Answer

A) True 
 B)False

Question 4

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks?

Accepted Answer

A) yesterday's forecasted attendance and yesterday's actual attendance 
B) yesterday's actual attendance and today's forecasted attendance 
C) yesterday's forecasted attendance and today's forecasted attendance 
D) yesterday's actual attendance and last year's actual attendance 
E) yesterday's forecasted attendance and the year-to-date average daily forecast error 
A) yesterday's forecasted attendance and yesterday's actual attendance 
B) yesterday's actual attendance and today's forecasted attendance 
C) yesterday's forecasted attendance and today's forecasted attendance 
D) yesterday's actual attendance and last year's actual attendance 
E) yesterday's forecasted attendance and the year-to-date average daily forecast error

Question 5

What are the differences between quantitative and qualitative forecasting methods?

Accepted Answer

Quantitative methods use mathematical mo

Question 6

Demand forecasts serve as inputs to financial,marketing,and personnel planning.

Accepted Answer

A) True 
 B)False

Question 7

The fundamental difference between cycles and seasonality is the:

Accepted Answer

A) duration of the repeating patterns. 
B) magnitude of the variation. 
C) ability to attribute the pattern to a cause. 
D) all of the above 
E) none of the above 
A) duration of the repeating patterns. 
B) magnitude of the variation. 
C) ability to attribute the pattern to a cause. 
D) all of the above 
E) none of the above

Question 8

Arnold Tofu owns and operates a chain of 12 vegetable protein "hamburger" restaurants in northern Louisiana.Sales figures and profits for the stores are provided in the table below.Sales are given in millions of dollars;profits are in hundreds of thousands of dollars.Calculate a regression line for the data.What is your forecast of profit for a store with sales of $24 million? $30 million?

Accepted Answer

Students must recognize that "sales" is

Question 9

Short-range forecasts tends to ________ longer-range forecasts.

Accepted Answer

A) be less accurate than 
B) be more accurate than 
C) have about the same level of accuracy as 
D) employ the same methodologies as 
E) deal with more comprehensive issues than 
A) be less accurate than 
B) be more accurate than 
C) have about the same level of accuracy as 
D) employ the same methodologies as 
E) deal with more comprehensive issues than

Question 10

________ forecasts are concerned with rates of technological progress,which can result in the birth of exciting new products,requiring new plants and equipment.

Accepted Answer

The answer of ________ forecasts are concerned with rates of...

Question 11

John's House of Pancakes uses a weighted moving average method to forecast pancake sales.It assigns a weight of 5 to the previous month's demand,3 to demand two months ago,and 1 to demand three months ago.If sales amounted to 1000 pancakes in May,2200 pancakes in June,and 3000 pancakes in July,what should be the forecast for August?

Accepted Answer

A) 2400 
B) 2511 
C) 2067 
D) 3767 
E) 1622 
A) 2400 
B) 2511 
C) 2067 
D) 3767 
E) 1622

Question 12

What does it mean to "decompose" a time series?

Accepted Answer

To decompose a time series mea

Question 13

The ________ measures the strength of the relationship between two variables.

Accepted Answer

coefficien

Question 14

Suppose that the last four months of sales were 8,10,15,and 9 units,respectively.Suppose further that the last four forecasts were 5,6,11,and 12 units,respectively.What is the Mean Absolute Deviation (MAD)of these forecasts?

Accepted Answer

A) 2 
B) -10 
C) 3.5 
D) 9 
E) 10.5 
A) 2 
B) -10 
C) 3.5 
D) 9 
E) 10.5

Question 15

Demand for a certain product is forecast to be 8,000 units per month,averaged over all 12 months of the year.The product follows a seasonal pattern,for which the January monthly index is 1.25.What is the seasonally-adjusted sales forecast for January?

Accepted Answer

8,000 × 1.

Question 16

What are the three realities of forecasting that companies face?

Accepted Answer

First,outside factors that we cannot pre

Question 17

The forecasting technique that pools the opinions of a group of experts or managers is known as:

Accepted Answer

A) the expert judgment model. 
B) multiple regression. 
C) jury of executive opinion. 
D) market survey. 
E) management coefficients. 
A) the expert judgment model. 
B) multiple regression. 
C) jury of executive opinion. 
D) market survey. 
E) management coefficients.

Question 18

A fundamental distinction between trend projection and linear regression is that:

Accepted Answer

A) trend projection uses least squares while linear regression does not. 
B) only linear regression can have a negative slope. 
C) in trend projection the independent variable is time;in linear regression the independent variable need not be time,but can be any variable with explanatory power. 
D) trend projection can be a function of several variables,while linear regression can only be a function of one variable. 
E) trend projection uses two smoothing constants,not just one. 
A) trend projection uses least squares while linear regression does not. 
B) only linear regression can have a negative slope. 
C) in trend projection the independent variable is time;in linear regression the independent variable need not be time,but can be any variable with explanatory power. 
D) trend projection can be a function of several variables,while linear regression can only be a function of one variable. 
E) trend projection uses two smoothing constants,not just one.

Question 19

In a regression equation where y-hat is demand and x is advertising,a coefficient of determination (R2)of .70 means that 70% of the variance in advertising is explained by demand.

Accepted Answer

A) True 
 B)False

Question 20

Most forecasting techniques assume that there is some underlying stability in the system.

Accepted Answer

A) True 
 B)False

Exam 4: Forecasting Demand

The smoothing constant is a weighting factor used in ________.

An approach to exponential smoothing in which the smoothing constant is automatically changed to keep errors to a minimum is called ________.

A naïve forecast for September sales of a product would be equal to the sales in August.

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks?

What are the differences between quantitative and qualitative forecasting methods?

Demand forecasts serve as inputs to financial,marketing,and personnel planning.

The fundamental difference between cycles and seasonality is the:

Short-range forecasts tends to ________ longer-range forecasts.

________ forecasts are concerned with rates of technological progress,which can result in the birth of exciting new products,requiring new plants and equipment.

What does it mean to "decompose" a time series?

The ________ measures the strength of the relationship between two variables.

Suppose that the last four months of sales were 8,10,15,and 9 units,respectively.Suppose further that the last four forecasts were 5,6,11,and 12 units,respectively.What is the Mean Absolute Deviation (MAD)of these forecasts?

Demand for a certain product is forecast to be 8,000 units per month,averaged over all 12 months of the year.The product follows a seasonal pattern,for which the January monthly index is 1.25.What is the seasonally-adjusted sales forecast for January?

What are the three realities of forecasting that companies face?

The forecasting technique that pools the opinions of a group of experts or managers is known as:

A fundamental distinction between trend projection and linear regression is that:

In a regression equation where y-hat is demand and x is advertising,a coefficient of determination (R2)of .70 means that 70% of the variance in advertising is explained by demand.

Most forecasting techniques assume that there is some underlying stability in the system.

Operations and Productivity

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Quality Management and International Standards

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Job Design and Work Measurement

Supply Chain Management

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Scheduling for the Short-Term

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