Forecasting chap10 Flashcards
1
Q
What are the 4 components of time series analysis?
A
- the trend
- cyclical variations
- seasonal variations
- random fluctuations
2
Q
Examples of quantitative decision making techniques…
A
- decision tress
- time serious analysis
- absenteeism
3
Q
Examples of qualitative decision making techniques…
A
- SWOT analysis
- PEST analysis
- market research
- ansoffs matrix
4
Q
What is time series analysis?
A
A moving average. A moving average uses past data and looks at data over a period of time and combines it.
5
Q
What is the delphi technique?
A
- structured technique
- relies of information from experts
- usually takes form of a questionnaire
- experts are asked for their opinion
- their opinion is shared and summarised
- then they are given the chance to revise their answers
6
Q
How is time series analysis useful?
A
It is more useful for a business that faces cyclical or seasonal change in demand, because the analysis will iron out the variations and give a long term trend for the data.
7
Q
What are the limitations of forecasting?
A
- they do not take into account the businesses objectives
- a lot of assumptions which creates uncertainty
8
Q
How do you calculate the 3 period average?
A
- add up the the last 3 years
- divide by 3
