Question 1

Correlation measures the strength and direction of a relationship between variables.

Accepted Answer

A) True 
 B)False

Question 2

Given forecast errors of -5,-10,and + 15,what is the mean absolute deviation (MAD) ?

Accepted Answer

A)   0
B)   10
C)   30
D)   175
E)   None of these.F) A) and E)
G) A) and B)

Question 3

Which of the following techniques are most likely to be used for forecasting demand for new products and services?

Accepted Answer

A)   Trend models
B)   Judgmental methods
C)   Moving averages
D)   Regression models
E)   Exponential smoothing techniquesF) D) and E)
G) A) and D)

Question 4

The primary difference between irregular and random variations is the ability to attribute variations to a specific cause.

Accepted Answer

A) True 
 B)False

Question 5

Time series data may exhibit all but which of the following behaviours?

Accepted Answer

A)   Trend
B)   Seasonality
C)   Cycles
D)   Irregularities
E)   All of the choices may be exhibitedF) None of the above
G) B) and E)

Question 6

The MSE is the best measure to use in a control chart to monitor if forecast error is randomly distributed around a mean value of 0.

Accepted Answer

A) True 
 B)False

Question 7

Given the following data,develop a linear regression model for y as a function of x.

Accepted Answer

The answer of Given the following data,develop a linear regression...

Question 8

In operations,forecasts are the basis for all of the following EXCEPT:

Accepted Answer

A)   capacity planning
B)   project management
C)   inventory planning
D)   work assignments and workloads
E)   forecasts are the basis for all of the choices.F) B) and C)
G) A) and E)

Question 9

Simple exponential smoothing is being used to forecast demand.The previous forecast of 66 turned out to be 3 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) A) and C)
G) A) and D)

Question 10

What is the monthly rate of change (slope) of the least squares trend line for these data?

Accepted Answer

A)   320
B)   102
C)   8
D)   -0.4
E)   -8F) None of the above
G) C) and D)

Question 11

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 12

Given forecast errors of 5,0,-4,and 3,what is the mean absolute deviation (MAD) ?

Accepted Answer

A)   4
B)   3
C)   2.5
D)   2
E)   1F) C) and E)
G) A) and B)

Question 13

What is this year's forecast using a two-year weighted moving average with weights of .7 and .3?

Accepted Answer

A)   19,400
B)   18,600
C)   19,000
D)   11,400
E)   10,600F) All of the above
G) A) and E)

Question 14

An advantage of "trend adjusted exponential smoothing" over the "linear trend equation" is its ability to adjust over time to changes in the trend.

Accepted Answer

A) True 
 B)False

Question 15

A manager is using exponential smoothing to predict merchandise returns at a suburban branch of a department store chain.Given a previous forecast of 140 items,an actual number of returns of 148 items,and a smoothing constant equal to .15,what is the forecast for the next period?

Accepted Answer

The answer of A manager is using exponential smoothing to...

Question 16

Which of the following is not a step in the forecasting process?

Accepted Answer

A)   Determine the purpose of the purpose.
B)   Eliminate any assumptions and rely solely on verifiable factual data.
C)   Establish a forecasting horizon.
D)   Select a forecasting technique.
E)   Monitor the forecast.F) All of the above
G) C) and D)

Question 17

The previous trend line had predicted 18,500 for two years ago,and 19,700 for last year.What was the mean absolute percent error (MAPE) for these forecasts?

Accepted Answer

A)   0.21
B)   2.14
C)   4.28
D)   100
E)   400F) All of the above
G) A) and C)

Question 18

MAD is equal to the square root of MSE.

Accepted Answer

A) True 
 B)False

Question 19

The forecast error is the difference between the actual value and the forecast value for a given period.

Accepted Answer

A) True 
 B)False

Question 20

The mean absolute deviation (MAD) is used to:

Accepted Answer

A)   estimate the trend line.
B)   eliminate forecast errors.
C)   measure forecast accuracy.
D)   seasonally adjust the forecast.
E)   all of the choices.F) All of the above
G) B) and C)

Exam 3: Demand Forecasting

The forecast error is the difference between the actual value and the forecast value for a given period.

Correct AnswerverifiedShow Answer

Given the following data,develop a linear regression model for y as a function of x.

Correct AnswerverifiedShow Answer

Which of the following techniques are most likely to be used for forecasting demand for new products and services?

Correct AnswerverifiedShow Answer

An advantage of "trend adjusted exponential smoothing" over the "linear trend equation" is its ability to adjust over time to changes in the trend.

Correct AnswerverifiedShow Answer

A manager is using exponential smoothing to predict merchandise returns at a suburban branch of a department store chain.Given a previous forecast of 140 items,an actual number of returns of 148 items,and a smoothing constant equal to .15,what is the forecast for the next period?

Correct AnswerverifiedShow Answer

MAD is equal to the square root of MSE.

Correct AnswerverifiedShow Answer

What is this year's forecast using a two-year weighted moving average with weights of .7 and .3?

Correct AnswerverifiedShow Answer

What is the monthly rate of change (slope) of the least squares trend line for these data?

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

The primary difference between irregular and random variations is the ability to attribute variations to a specific cause.

Correct AnswerverifiedShow Answer

In operations,forecasts are the basis for all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Correlation measures the strength and direction of a relationship between variables.

Correct AnswerverifiedShow Answer

The previous trend line had predicted 18,500 for two years ago,and 19,700 for last year.What was the mean absolute percent error (MAPE) for these forecasts?

Correct AnswerverifiedShow Answer

Time series data may exhibit all but which of the following behaviours?

Correct AnswerverifiedShow Answer

Simple exponential smoothing is being used to forecast demand.The previous forecast of 66 turned out to be 3 units less than actual demand.The next forecast is 66.6,implying a smoothing constant,alpha,equal to:

Correct AnswerverifiedShow Answer

Given forecast errors of 5,0,-4,and 3,what is the mean absolute deviation (MAD) ?

Correct AnswerverifiedShow Answer

The MSE is the best measure to use in a control chart to monitor if forecast error is randomly distributed around a mean value of 0.

Correct AnswerverifiedShow Answer

Given forecast errors of -5,-10,and + 15,what is the mean absolute deviation (MAD) ?

Correct AnswerverifiedShow Answer

Which of the following is not a step in the forecasting process?

Correct AnswerverifiedShow Answer

The mean absolute deviation (MAD) is used to:

Correct AnswerverifiedShow Answer

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