DSM 4

Question 1

A forecast that projects a company’s sales is a(n):

Answer 1

Demand Forecast

Question 2

The primary purpose of the mean absolute deviation (MAD) in forecasting is to:

Answer 2

measures forecast accuracy

Question 3

For a given product demand, the time-series trend equation is 53 – 4X. The negative sign on the slope of the equation:

Answer 3

is an indication that the cumulative error will be negative

Question 4

The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate:

Answer 4

Bias

Question 5

Which time-series model assumes that demand in the next period will be equal to the most recent period’s demand?

Answer 5

naive approach

Question 6

Which of the following statements about time-series forecasting is true?

Answer 6

It is based on the assumption that the analysis of past demand helps predict future demand.

Question 7

Time-series patterns that repeat themselves after a period of days or weeks are called __________

Answer 7

seasonality

Question 8

he tracking signal is the__________

Answer 8

ratio of cumulative error/MAD