Question 1

List and briefly describe the three major types of forecasts that organizations use in planning future operations.

Accepted Answer

The three types are economic,technologic

Question 2

Identify the seven steps involved in forecasting.

Accepted Answer

1.Determine the use of the forecast.
2.S

Question 3

A six-month moving average forecast is generally better than a three-month moving average forecast if demand:

Accepted Answer

A) is rather stable. 
B) has been changing due to recent promotional efforts. 
C) follows a downward trend. 
D) exceeds one million units per year. 
E) follows an upward trend. 
A) is rather stable. 
B) has been changing due to recent promotional efforts. 
C) follows a downward trend. 
D) exceeds one million units per year. 
E) follows an upward trend.

Question 4

In trend projection,the trend component is the slope of the regression equation.

Accepted Answer

A) True 
 B)False

Question 5

Weekly sales of ten-grain bread at the local organic food market are provided in the table below.Based on these data,forecast week 9 using a five-week moving average.
Week Sales
1 415
2 389
3 420
4 382
5 410
6 432
7 405
8 421

Accepted Answer

(382 + 410

Question 6

A small family-owned restaurant uses a seven-day moving average model to determine manpower requirements.These forecasts need to be seasonalized because each day of the week has its own demand pattern.The seasonal indices for each day of the week are: Monday 0.445;Tuesday 0.791;Wednesday 0.927;Thursday 1.033;Friday 1.422;Saturday 1.478;and Sunday 0.903.Average daily demand based on the most recent moving average is 194 patrons.What is the seasonalized forecast for each day of next week?

Accepted Answer

The average value multiplied by each day

Question 7

The three major types of forecasts used by organizations in planning future operations are:

Accepted Answer

A) strategic,tactical,and operational. 
B) economic,technological,and demand. 
C) exponential smoothing,Delphi,and regression. 
D) causal,time-series,and seasonal. 
E) departmental,organizational,and territorial. 
A) strategic,tactical,and operational. 
B) economic,technological,and demand. 
C) exponential smoothing,Delphi,and regression. 
D) causal,time-series,and seasonal. 
E) departmental,organizational,and territorial.

Question 8

Given the following data,calculate the three-year moving averages for years 4 through 10.

Accepted Answer

The answer of Given the following data,calculate the three-year moving...

Question 9

The degree or strength of a relationship between two variables is shown by the:

Accepted Answer

A) alpha. 
B) mean. 
C) mean absolute deviation. 
D) coefficient of correlation. 
E) cumulative error. 
A) alpha. 
B) mean. 
C) mean absolute deviation. 
D) coefficient of correlation. 
E) cumulative error.

Question 10

A measure of forecast error that does not depend upon the magnitude of the item being forecast is the ________.

Accepted Answer

mean absol

Question 11

Suppose that the demand in period 1 was 7 units and the demand in period 2 was 9 units.Assume that the forecast for period 1 was for 5 units.If the firm uses exponential smoothing with an alpha value of .20,what should be the forecast for period 3? (Round answers to two decimal places. )

Accepted Answer

A) 9.00 
B) 3.72 
C) 9.48 
D) 5.00 
E) 6.12 
A) 9.00 
B) 3.72 
C) 9.48 
D) 5.00 
E) 6.12

Question 12

The last four weekly values of sales were 80,100,105,and 90 units,respectively.The last four forecasts (for the same four weeks)were 60,80,95,and 75 units,respectively.Calculate the MAD,MSE,and MAPE for these four weeks.

Accepted Answer

MAD = 65/4 = 16.25;M

Question 13

What is the key difference between weighted moving average and simple moving average approaches to forecasting?

Accepted Answer

Simple moving averages are useful where

Question 14

What is the difference between an associative model and a time-series model?

Accepted Answer

A time-series model uses only historical

Question 15

A skeptical manager asks what short-range forecasts can be used for.Give her three possible uses/purposes.

Accepted Answer

Any three of: planning purchas

Question 16

Focus forecasting tries a variety of computer models and selects the best one for a particular application.

Accepted Answer

A) True 
 B)False

Question 17

What is the forecast for May based on a weighted moving average applied to the following past demand data and using the weights: 4,3,2 (largest weight is for most recent data)?

Accepted Answer

2 × 42 + 3 × 47 + 4

Question 18

What is the forecast for May using a four-month moving average?

Accepted Answer

A) 38 
B) 42 
C) 43 
D) 44 
E) 47 
A) 38 
B) 42 
C) 43 
D) 44 
E) 47

Question 19

Given an actual demand this period of 103,a forecast value for this period of 99,and an alpha of .4,what is the exponential smoothing forecast for next period?

Accepted Answer

A) 94.6 
B) 97.4 
C) 100.6 
D) 101.6 
E) 103.0 
A) 94.6 
B) 97.4 
C) 100.6 
D) 101.6 
E) 103.0

Question 20

The primary purpose of the mean absolute deviation (MAD)in forecasting is to:

Accepted Answer

A) estimate the trend line. 
B) eliminate forecast errors. 
C) measure forecast accuracy. 
D) seasonally adjust the forecast. 
E) remove random variations. 
A) estimate the trend line. 
B) eliminate forecast errors. 
C) measure forecast accuracy. 
D) seasonally adjust the forecast. 
E) remove random variations.

Exam 4: Forecasting Demand

List and briefly describe the three major types of forecasts that organizations use in planning future operations.

Identify the seven steps involved in forecasting.

A six-month moving average forecast is generally better than a three-month moving average forecast if demand:

In trend projection,the trend component is the slope of the regression equation.

Weekly sales of ten-grain bread at the local organic food market are provided in the table below.Based on these data,forecast week 9 using a five-week moving average. Week Sales 1 415 2 389 3 420 4 382 5 410 6 432 7 405 8 421

The three major types of forecasts used by organizations in planning future operations are:

Given the following data,calculate the three-year moving averages for years 4 through 10.

The degree or strength of a relationship between two variables is shown by the:

A measure of forecast error that does not depend upon the magnitude of the item being forecast is the ________.

Suppose that the demand in period 1 was 7 units and the demand in period 2 was 9 units.Assume that the forecast for period 1 was for 5 units.If the firm uses exponential smoothing with an alpha value of .20,what should be the forecast for period 3? (Round answers to two decimal places. )

The last four weekly values of sales were 80,100,105,and 90 units,respectively.The last four forecasts (for the same four weeks)were 60,80,95,and 75 units,respectively.Calculate the MAD,MSE,and MAPE for these four weeks.

What is the key difference between weighted moving average and simple moving average approaches to forecasting?

What is the difference between an associative model and a time-series model?

A skeptical manager asks what short-range forecasts can be used for.Give her three possible uses/purposes.

Focus forecasting tries a variety of computer models and selects the best one for a particular application.

What is the forecast for May based on a weighted moving average applied to the following past demand data and using the weights: 4,3,2 (largest weight is for most recent data)?

What is the forecast for May using a four-month moving average?

Given an actual demand this period of 103,a forecast value for this period of 99,and an alpha of .4,what is the exponential smoothing forecast for next period?

The primary purpose of the mean absolute deviation (MAD)in forecasting is to:

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