Question 1

Use linear regression to develop a predictive model for demand for burial vaults based on sales of caskets.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> A) Develo...

Question 2

Given forecast errors of - 5, - 10, and +15, the MAD is:

Accepted Answer

A)  0
B)  10
C)  30
D)  175
E)  none of theseF) B) and E)
G) B) and D)

Question 3

Develop a forecast for the next period, given the data below, using a 3-period moving average.

Accepted Answer

The answer of Develop a forecast for the next period,...

Question 4

What is this month's forecast using the least squares trend line for these data?

Accepted Answer

A)  1,250
B)  128.6
C)  102
D)  158
E)  164F) A) and B)
G) B) and E)

Question 5

Which of the following is used for constructing a control chart?

Accepted Answer

A)  mean absolute deviation (MA
D)  
B)  mean squared error (MS
E)  
C)  tracking signal (TS) 
D)  bias
E)  none of the aboveF) B) and C)
G) All of the above

Question 6

Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing?

Accepted Answer

A)  36.9
B)  57.5
C)  60.5
D)  62.5
E)  65.5F) C) and D)
G) A) and C)

Question 7

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.

Accepted Answer

A) True 
 B)False

Question 8

A CPA firm has been using the following equation to predict annual demand for tax audits: Yt = 55 + 4t Demand for the past few years is shown below.Is the forecast performing as well as it might? Explain.

Accepted Answer

MSE = 11/6 and s =

= 3.41.Even with ...

Question 9

A manager is using the equation below to forecast quarterly demand for a product:
Yt = 6,000 + 80t where t = 0 at Q2 of last year
Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2.
What forecasts are appropriate for the last quarter of this year and the first quarter of next year?

Accepted Answer

For Q4 of this year ...

Question 10

Develop a linear trend equation for the data on bread deliveries shown below.Forecast deliveries for period 11 through 14.

Accepted Answer

Y_t = 518.2...

Question 11

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) A) and C)
G) A) and B)

Question 12

The degree of management involvement in short range forecasts is:

Accepted Answer

A)  none
B)  low
C)  moderate
D)  high
E)  totalF) A) and B)
G) B) and C)

Question 13

When new products or services are introduced, focus forecasting models are an attractive option.

Accepted Answer

A) True 
 B)False

Question 14

Simple exponential smoothing is being used to forecast demand.The previous forecast of 66 turned out to be four units less than actual demand.The next forecast is 66.6, implying a smoothing constant, alpha, equal to:

Accepted Answer

A)  .01
B)  .10
C)  .15
D)  .20
E)  .60F) C) and D)
G) A) and D)

Question 15

A forecast based on the previous forecast plus a percentage of the forecast error is:

Accepted Answer

A)  a naive forecast
B)  a simple moving average forecast
C)  a centered moving average forecast
D)  an exponentially smoothed forecast
E)  an associative forecastF) B) and C)
G) A) and B)

Question 16

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Accepted Answer

A)  0
B)  .01
C)  .1
D)  .5
E)  1.0F) C) and D)
G) A) and B)

Question 17

One reason for using the Delphi method in forecasting is to:

Accepted Answer

A)  avoid premature consensus (bandwagon effect) 
B)  achieve a high degree of accuracy
C)  maintain accountability and responsibility
D)  be able to replicate results
E)  prevent hurt feelingsF) B) and D)
G) B) and E)

Question 18

Which of the following mechanisms for enhancing profitability is most likely to result from improving short term forecast performance?

Accepted Answer

A)  increased inventory
B)  reduced flexibility
C)  higher-quality products
D)  greater customer satisfaction
E)  greater seasonalityF) A) and D)
G) C) and D)

Question 19

The sample standard deviation of forecast error is equal to the square root of MSE.

Accepted Answer

A) True 
 B)False

Question 20

Removing the seasonal component from a data series (de-seasonalizing) can be accomplished by dividing each data point by its appropriate seasonal relative.

Accepted Answer

A) True 
 B)False

Exam 3: Forecasting

Develop a forecast for the next period, given the data below, using a 3-period moving average.

Correct AnswerverifiedShow Answer

Use linear regression to develop a predictive model for demand for burial vaults based on sales of caskets.

Correct Answerverified A) Develo...View AnswerShow Answer

Simple exponential smoothing is being used to forecast demand.The previous forecast of 66 turned out to be four units less than actual demand.The next forecast is 66.6, implying a smoothing constant, alpha, equal to:

Correct AnswerverifiedShow Answer

The degree of management involvement in short range forecasts is:

Correct AnswerverifiedShow Answer

Given forecast errors of - 5, - 10, and +15, the MAD is:

Correct AnswerverifiedShow Answer

The sample standard deviation of forecast error is equal to the square root of MSE.

Correct AnswerverifiedShow Answer

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Correct AnswerverifiedShow Answer

Which of the following mechanisms for enhancing profitability is most likely to result from improving short term forecast performance?

Correct AnswerverifiedShow Answer

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.

Correct AnswerverifiedShow Answer

Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing?

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

Develop a linear trend equation for the data on bread deliveries shown below.Forecast deliveries for period 11 through 14.

Correct Answerverified Yt = 518.2...View AnswerShow Answer

A CPA firm has been using the following equation to predict annual demand for tax audits: Yt = 55 + 4t Demand for the past few years is shown below.Is the forecast performing as well as it might? Explain.

Correct Answerverified MSE = 11/6 and s = = 3.41.Even with ...View AnswerShow Answer

Removing the seasonal component from a data series (de-seasonalizing) can be accomplished by dividing each data point by its appropriate seasonal relative.

Correct AnswerverifiedShow Answer

One reason for using the Delphi method in forecasting is to:

Correct AnswerverifiedShow Answer

When new products or services are introduced, focus forecasting models are an attractive option.

Correct AnswerverifiedShow Answer

Which of the following is used for constructing a control chart?

Correct AnswerverifiedShow Answer

What is this month's forecast using the least squares trend line for these data?

Correct AnswerverifiedShow Answer

A manager is using the equation below to forecast quarterly demand for a product: Yt = 6,000 + 80t where t = 0 at Q2 of last year Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2. What forecasts are appropriate for the last quarter of this year and the first quarter of next year?

Correct AnswerverifiedFor Q4 of this year ...View AnswerShow Answer

A forecast based on the previous forecast plus a percentage of the forecast error is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A) Develo...
View 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
Y_t = 518.2...
View Answer

Correct Answer
verified

MSE = 11/6 and s = = 3.41.Even with ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A manager is using the equation below to forecast quarterly demand for a product: Y_t = 6,000 + 80t where t = 0 at Q2 of last year Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2. What forecasts are appropriate for the last quarter of this year and the first quarter of next year?

Correct Answer
verified
For Q4 of this year ...
View Answer

Correct Answer
verified