Chapter 4 Flashcards
What is a data pattern that repeats itself after a period of days, weeks, months, or quarters? A. random variation B. seasonality C. trend D. cycle
B
Which one of the following statements is NOT true about the forecasting in the service sector?
A. Detailed forecasts of demand are not needed.
B. Forecasting in the service sector presents some unusual challenges.
C. Hourly demand forecasts may be necessary.
D. Demand patterns are often different from those in non-service sectors.
A
A forecast that projects a company's sales is A. a technological forecast. B. an economic forecast. C. an environmental forecast. D. a demand forecast.
D
Which forecasting method considers several variables that are related to the variable being predicted? A. exponential smoothing B. multiple regression C. simple regression D. weighted moving average
B
A tracking signal
A. that is negative indicates that demand is greater than the forecast.
B. is computed as the mean absolute deviation (MAD) divided by the running sum of the forecast errors (RSFE).
C. cannot be used with exponential smoothing.
D. is a measurement of how well a forecast is predicting actual values.
D
CPFR is
A. complete, partner, forecasting, and replenishment.
B. complete, planning, forecasting, and replenishment.
C. collaborative, planning, forecasting, and replenishment.
D. collaborative, partner, forecasting, and replenishment.
C
The forecasting time horizon that would typically be easiest to predict for would be the A. intermediate range. B. short range. C. long range. D. medium range.
B
Which of the following is the FIRST step in a forecasting system?
A. Select the forecast model(s).
B. Determine the time horizon of the forecast.
C. Determine the use of the forecast.
D. Select the items to be forecasted.
C
Which of the following is a quantitative forecasting method? A. sales force composite B. market survey C. exponential smoothing D. jury of executive opinion
C
When using exponential smoothing, the smoothing constant
A. can be determined using MAD.
B. is typically between .75 and .95 for most business applications.
C. indicates the accuracy of the previous forecast.
D. should be chosen to maximize positive bias.
A
Which of the following statements is NOT true regarding forecasting?
A. A forecast is usually classified by the future time horizon that it covers.
B. Forecasting may involve taking historical data and projecting them into the future with a mathematical model.
C. Forecasting is exclusively an objective prediction.
D. Forecasting is the art and science of predicting future events
C
Which of the following is a qualitative forecasting method? A. Delphi method B. linear regression C. trend projection D. naive approach
A
Which of the following is NOT a time-series model? A. moving averages B. exponential smoothing C. multiple regression D. naive approach
C
A measure of the strength of the relationship between two variables is referred to as the A. coefficient of correlation. B. standard error of the estimate. C. standard deviation of the estimate. D. coefficient of determination.
A
A forecast that addresses the business cycle by predicting planning indicators is A. an environmental forecast. B. a technological forecast. C. an economic forecast. D. a demand forecast.
C
