Question 1

Trend adjusted exponential smoothing requires selection of two smoothing constants.

Accepted Answer

A) True 
 B)False

Question 2

What is this year's forecast using the naive approach?

Accepted Answer

A)   22,000
B)   20,000
C)   18,000
D)   15,000
E)   12,000F) None of the above
G) A) and B)

Question 3

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

Accepted Answer

A)   0
B)   .01
C)   .05
D)   .10
E)   .15F) C) and E)
G) C) and D)

Question 4

In trend-adjusted exponential smoothing,the trend adjusted forecast (TAF) consists of:

Accepted Answer

A)   an exponentially smoothed forecast and a smoothed trend factor.
B)   an exponentially smoothed forecast and an estimated trend value.
C)   the old forecast adjusted by a trend factor.
D)   the old forecast and a smoothed trend factor.
E)   a moving average and a trend factor.F) B) and C)
G) A) and B)

Question 5

What is this year's forecast using exponential smoothing with alpha = .2,if last year's smoothed forecast was 15,000?

Accepted Answer

A)   20,000
B)   19,000
C)   17,500
D)   16,000
E)   15,000F) A) and B)
G) B) and C)

Question 6

Over the past five years,a firm's sales have averaged 250 units in the first quarter of each year,100 units in the second quarter,150 units in the third quarter,and 300 units in the fourth quarter.What are appropriate quarter relatives for this firm's sales?
 Hint:
 Only minimal computations are necessary.

Accepted Answer

Since a trend is not present,q...

Question 7

Since a primary goal of operations management to match supply to demand,forecasts become a basic input to the decision process because they provide information on past demand.

Accepted Answer

A) True 
 B)False

Question 8

The naive forecast can serve as a standard of comparison against which to judge the cost and accuracy of other techniques.

Accepted Answer

A) True 
 B)False

Question 9

A company is conducting long-term planning of which types of services they should offer.Which of the following forecasting techniques are they most likely to use?

Accepted Answer

A)   Trend models
B)   Executive opinion
C)   Regression models
D)   Simple exponential smoothing
E)   None of the choices are used for the longer term.F) C) and E)
G) B) and E)

Question 10

What is the forecast for this year using a three-year weighted moving average with weights of .5,.3,and .2?

Accepted Answer

A)   163
B)   180
C)   300
D)   420
E)   510F) B) and D)
G) A) and E)

Question 11

Which is not a characteristic of simple moving averages applied to time series data?

Accepted Answer

A)   Smooths random variations in the data
B)   Weights each historical value equally
C)   Lags changes in the data
D)   Has minimal reliance on historical data
E)   Smooths real variations in the dataF) B) and C)
G) A) and E)

Question 12

In order to compute seasonal relatives,the trend of past data must be computed or known.

Accepted Answer

A) True 
 B)False

Question 13

A manager uses this equation to predict demand:
 Yt= 20 + 4t.Over the past 8 periods,demand has been as follows.Are the results acceptable?
 Explain.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> s = 2.10; 2s control limits a...

Question 14

What is this year's forecast using a three-year simple moving average?

Accepted Answer

A)   2,667
B)   2,600
C)   2,500
D)   2,400
E)   2,333F) A) and C)
G) A) and D)

Question 15

Persistent upward or downward movement in time series data is called:

Accepted Answer

A)   seasonal variation.
B)   cycles.
C)   irregular variation.
D)   trend.
E)   random variation.F) A) and E)
G) A) and B)

Question 16

A control chart involves setting control limits to monitor cumulative forecast error.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following factors is generally not a consideration at the time of selecting an appropriate forecasting method to use?

Accepted Answer

A)   Amount of historical data available
B)   Forecast horizon
C)   Mean square error in the forecast
D)   Evidence of a pattern in time series data
E)   Preparation time (cost) F) A) and B)
G) C) and D)

Question 18

The primary method for associative forecasting is:

Accepted Answer

A)   Naïve method
B)   Regression analysis
C)   Simple moving averages
D)   Centred moving averages
E)   Exponential smoothingF) D) and E)
G) C) and D)

Question 19

MSE weighs errors according to ______________ and MAPE weighs according to _______________.

Accepted Answer

A)   squared values; mean absolute values
B)   absolute values; absolute percentage error
C)   absolute percentage error; squared values
D)   squared values; absolute percentage error
E)   none of the choices are correct.F) A) and C)
G) C) and D)

Question 20

Which of the following is not a requirement of a properly prepared forecast?

Accepted Answer

A)   Timely
B)   Accurate
C)   Reliable
D)   Simple to understand and use
E)   InexpensiveF) B) and E)
G) C) and E)

Exam 3: Demand Forecasting

Since a primary goal of operations management to match supply to demand,forecasts become a basic input to the decision process because they provide information on past demand.

Correct Answer
verified

A company is conducting long-term planning of which types of services they should offer.Which of the following forecasting techniques are they most likely to use?

Correct Answer
verified

Persistent upward or downward movement in time series data is called:

Correct Answer
verified

In trend-adjusted exponential smoothing,the trend adjusted forecast (TAF) consists of:

Correct Answer
verified

The naive forecast can serve as a standard of comparison against which to judge the cost and accuracy of other techniques.

Correct Answer
verified

Trend adjusted exponential smoothing requires selection of two smoothing constants.

Correct Answer
verified

What is the forecast for this year using a three-year weighted moving average with weights of .5,.3,and .2?

Correct Answer
verified

Which is not a characteristic of simple moving averages applied to time series data?

Correct Answer
verified

Which of the following factors is generally not a consideration at the time of selecting an appropriate forecasting method to use?

Correct Answer
verified

A control chart involves setting control limits to monitor cumulative forecast error.

Correct Answer
verified

Correct Answer
verified
Since a trend is not present,q...
View Answer

What is this year's forecast using the naive approach?

Correct Answer
verified

What is this year's forecast using exponential smoothing with alpha = .2,if last year's smoothed forecast was 15,000?

Correct Answer
verified

The primary method for associative forecasting is:

Correct Answer
verified

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

Correct Answer
verified

Which of the following is not a requirement of a properly prepared forecast?

Correct Answer
verified

MSE weighs errors according to and MAPE weighs according to _.

Correct Answer
verified

A manager uses this equation to predict demand: Yt= 20 + 4t.Over the past 8 periods,demand has been as follows.Are the results acceptable? Explain.

Correct Answer
verified
s = 2.10; 2s control limits a...
View Answer

In order to compute seasonal relatives,the trend of past data must be computed or known.

Correct Answer
verified

What is this year's forecast using a three-year simple moving average?

Correct Answer
verified

Exam 3: Demand Forecasting

Since a primary goal of operations management to match supply to demand,forecasts become a basic input to the decision process because they provide information on past demand.

Correct AnswerverifiedShow Answer

A company is conducting long-term planning of which types of services they should offer.Which of the following forecasting techniques are they most likely to use?

Correct AnswerverifiedShow Answer

Persistent upward or downward movement in time series data is called:

Correct AnswerverifiedShow Answer

In trend-adjusted exponential smoothing,the trend adjusted forecast (TAF) consists of:

Correct AnswerverifiedShow Answer

The naive forecast can serve as a standard of comparison against which to judge the cost and accuracy of other techniques.

Correct AnswerverifiedShow Answer

Trend adjusted exponential smoothing requires selection of two smoothing constants.

Correct AnswerverifiedShow Answer

What is the forecast for this year using a three-year weighted moving average with weights of .5,.3,and .2?

Correct AnswerverifiedShow Answer

Which is not a characteristic of simple moving averages applied to time series data?

Correct AnswerverifiedShow Answer

Which of the following factors is generally not a consideration at the time of selecting an appropriate forecasting method to use?

Correct AnswerverifiedShow Answer

A control chart involves setting control limits to monitor cumulative forecast error.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedSince a trend is not present,q...View AnswerShow Answer

What is this year's forecast using the naive approach?

Correct AnswerverifiedShow Answer

What is this year's forecast using exponential smoothing with alpha = .2,if last year's smoothed forecast was 15,000?

Correct AnswerverifiedShow Answer

The primary method for associative forecasting is:

Correct AnswerverifiedShow Answer

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

Correct AnswerverifiedShow Answer

Which of the following is not a requirement of a properly prepared forecast?

Correct AnswerverifiedShow Answer

MSE weighs errors according to ______________ and MAPE weighs according to _______________.

Correct AnswerverifiedShow Answer

A manager uses this equation to predict demand: Yt= 20 + 4t.Over the past 8 periods,demand has been as follows.Are the results acceptable? Explain.

Correct Answerverified s = 2.10; 2s control limits a...View AnswerShow Answer

In order to compute seasonal relatives,the trend of past data must be computed or known.

Correct AnswerverifiedShow Answer

What is this year's forecast using a three-year simple moving average?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Since a trend is not present,q...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

MSE weighs errors according to and MAPE weighs according to _.

Correct Answer
verified

Correct Answer
verified
s = 2.10; 2s control limits a...
View Answer

Correct Answer
verified

Correct Answer
verified