Question 1

Over the long term,which of the following forecasting models will likely require carrying the least amount of data?

Accepted Answer

A)  Naïve
B)  Simple mean
C)  Exponential smoothing
D)  Weighted moving average
E)  Moving averageF) B) and D)
G) C) and D)

Question 2

What are the two categories of quantitative models?

Accepted Answer

time serie...

Question 3

Economics relies on forecasting to predict the duration of economic turning points.

Accepted Answer

A) True 
 B)False

Question 4

Qualitative forecasting methods

Accepted Answer

A)  are made objectively by the forecaster
B)  are made subjectively by the forecaster
C)  are made using existing data sources
D)  are based on mathematical models
E)  are only used in parallel with quantitative modelsF) C) and D)
G) B) and C)

Question 5

"Do you have medium data sets?" is a key guideline for selecting software.

Accepted Answer

A) True 
 B)False

Question 6

When evaluating forecasting models it is accurate to say:

Accepted Answer

A)  they all rely on the same data sets
B)  they will provide the same results
C)  they are usually accurate
D)  they differ in their degree of complexity
E)  they do not differ in their degree of complexityF) B) and E)
G) None of the above

Question 7

A cycle is typically the most difficult data pattern to predict.

Accepted Answer

A) True 
 B)False

Question 8

Suppose that you are using the four-period simple moving average method to forecast sales,and sales have been increasing by 20% every period.How will your forecasts perform?

Accepted Answer

A)  Forecasts will be lower than actual.
B)  Forecasts will be higher than actual.
C)  Forecasts will equal actual.
D)  Forecasts will be decreasing.
E)  Forecasts will be increasing by 5.0% every period.F) B) and D)
G) A) and E)

Question 9

A qualitative forecast is made subjectively by the forecaster.

Accepted Answer

A) True 
 B)False

Question 10

When is exponential smoothing equivalent to the "naïve" approach to forecasting?

Accepted Answer

A)  When the smoothing constant is chosen randomly
B)  α = 0
C)  α = 1
D)  α = .5
E)  When next month's forecast equals this month's forecastF) C) and E)
G) A) and E)

Question 11

Cover Me,Inc.sells umbrellas in three cities.Management assumes that annual rainfall is the primary determinant of umbrella sales,and it wants to generate a linear regression equation to estimate potential sales in other cities.Given the data below,what is the regression equation?
Rainfall Sales
X Y
City A 36 in.2300
City B 30 in.2000
City C 12 in.800

Accepted Answer

The answer of Cover Me,Inc.sells umbrellas in three cities.Management assumes...

Question 12

The difference between MSE and r2 is that _______________.

Accepted Answer

MSE uses the sample size,n,in ...

Question 13

Suppose that you are using the three-period simple moving average method to forecast sales,and sales have been increasing by 10% every period.Then your forecasts will be lower than the actual sales.

Accepted Answer

A) True 
 B)False

Question 14

Time series models are generally more difficult to use than causal models.

Accepted Answer

A) True 
 B)False

Question 15

Forecasting is not a function which contributes to:

Accepted Answer

A)  deciding which business market to pursue
B)  deciding which product to produce
C)  deciding how bonuses should be allocated
D)  deciding how much inventory to carry
E)  deciding how many people to hireF) C) and D)
G) B) and D)

Question 16

What is the mean absolute deviation and mean squared error of the following forecast

Accepted Answer

A)  13,157
B)  14,321
C)  16,312
D)  17,316
E)  18,321F) A) and D)
G) A) and C)

Question 17

Which of the following is the least useful sales forecasting model to use when sales are increasing?

Accepted Answer

A)  Trend adjusted exponential smoothing
B)  Simple mean
C)  Exponential smoothing
D)  Weighted moving average
E)  NaïveF) B) and D)
G) C) and D)

Question 18

Suppose that you want to set up a 3-month weighted moving average forecasting system.You want the weights to be percentages (that add to 100%) .Furthermore,you want weights for the most recent two months to be equal but you want each of those weights to be twice as large as the weight for the oldest month.What should the weight be for the oldest month?

Accepted Answer

A)  33%
B)  25%
C)  80%
D)  50%
E)  20%F) A) and E)
G) A) and B)

Question 19

The most frequently used forecasting model is the ____________.

Accepted Answer

exponentia...

Question 20

The simple moving average forecasting method uses fewer periods of data than the simple mean forecasting method does.

Accepted Answer

A) True 
 B)False

Exam 8: Forecasting

Correct Answer
verified

Time series models are generally more difficult to use than causal models.

Correct Answer
verified

Qualitative forecasting methods

Correct Answer
verified

The simple moving average forecasting method uses fewer periods of data than the simple mean forecasting method does.

Correct Answer
verified

Forecasting is not a function which contributes to:

Correct Answer
verified

The most frequently used forecasting model is the ____________.

Correct Answer
verified
exponentia...
View Answer

The difference between MSE and r² is that _______________.

Correct Answer
verified
MSE uses the sample size,n,in ...
View Answer

Suppose that you are using the four-period simple moving average method to forecast sales,and sales have been increasing by 20% every period.How will your forecasts perform?

Correct Answer
verified

Correct Answer
verified

When evaluating forecasting models it is accurate to say:

Correct Answer
verified

"Do you have medium data sets?" is a key guideline for selecting software.

Correct Answer
verified

Suppose that you are using the three-period simple moving average method to forecast sales,and sales have been increasing by 10% every period.Then your forecasts will be lower than the actual sales.

Correct Answer
verified

What are the two categories of quantitative models?

Correct Answer
verified
time serie...
View Answer

What is the mean absolute deviation and mean squared error of the following forecast

Correct Answer
verified

Which of the following is the least useful sales forecasting model to use when sales are increasing?

Correct Answer
verified

Economics relies on forecasting to predict the duration of economic turning points.

Correct Answer
verified

When is exponential smoothing equivalent to the "naïve" approach to forecasting?

Correct Answer
verified

A cycle is typically the most difficult data pattern to predict.

Correct Answer
verified

A qualitative forecast is made subjectively by the forecaster.

Correct Answer
verified

Over the long term,which of the following forecasting models will likely require carrying the least amount of data?

Correct Answer
verified

Exam 8: Forecasting

Correct AnswerverifiedShow Answer

Time series models are generally more difficult to use than causal models.

Correct AnswerverifiedShow Answer

Qualitative forecasting methods

Correct AnswerverifiedShow Answer

The simple moving average forecasting method uses fewer periods of data than the simple mean forecasting method does.

Correct AnswerverifiedShow Answer

Forecasting is not a function which contributes to:

Correct AnswerverifiedShow Answer

The most frequently used forecasting model is the ____________.

Correct Answerverifiedexponentia...View AnswerShow Answer

The difference between MSE and r2 is that _______________.

Correct AnswerverifiedMSE uses the sample size,n,in ...View AnswerShow Answer

Suppose that you are using the four-period simple moving average method to forecast sales,and sales have been increasing by 20% every period.How will your forecasts perform?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When evaluating forecasting models it is accurate to say:

Correct AnswerverifiedShow Answer

"Do you have medium data sets?" is a key guideline for selecting software.

Correct AnswerverifiedShow Answer

Suppose that you are using the three-period simple moving average method to forecast sales,and sales have been increasing by 10% every period.Then your forecasts will be lower than the actual sales.

Correct AnswerverifiedShow Answer

What are the two categories of quantitative models?

Correct Answerverifiedtime serie...View AnswerShow Answer

What is the mean absolute deviation and mean squared error of the following forecast

Correct AnswerverifiedShow Answer

Which of the following is the least useful sales forecasting model to use when sales are increasing?

Correct AnswerverifiedShow Answer

Economics relies on forecasting to predict the duration of economic turning points.

Correct AnswerverifiedShow Answer

When is exponential smoothing equivalent to the "naïve" approach to forecasting?

Correct AnswerverifiedShow Answer

A cycle is typically the most difficult data pattern to predict.

Correct AnswerverifiedShow Answer

A qualitative forecast is made subjectively by the forecaster.

Correct AnswerverifiedShow Answer

Over the long term,which of the following forecasting models will likely require carrying the least amount of data?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
exponentia...
View Answer

The difference between MSE and r² is that _______________.

Correct Answer
verified
MSE uses the sample size,n,in ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
time serie...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified