Question 1

Which of the following is TRUE regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

Accepted Answer

A)  One constant is positive,while the other is negative.
B)  They are called MAD and cumulative error.
C)  Alpha is always smaller than beta.
D)  One constant smoothes the regression intercept,whereas the other smoothes the regression slope.
E)  Their values are determined independently.

Question 2

A small family-owned restaurant uses a seven-day moving average model to determine manpower requirements.These forecasts need to be seasonalized because each day of the week has its own demand pattern.The seasonal indices for each day of the week are: Monday 0.445;Tuesday 0.791;Wednesday 0.927;Thursday 1.033;Friday 1.422;Saturday 1.478;and Sunday 0.903.Average daily demand based on the most recent moving average is 194 patrons.What is the seasonalized forecast for each day of next week?

Accepted Answer

The average value multiplied by each day...

Question 3

The fundamental difference between cycles and seasonality is the:

Accepted Answer

A)  duration of the repeating patterns.
B)  magnitude of the variation.
C)  ability to attribute the pattern to a cause.
D)  all of the above
E)  none of the above

Question 4

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

Accepted Answer

A)  estimate the trend line.
B)  eliminate forecast errors.
C)  measure forecast accuracy.
D)  seasonally adjust the forecast.
E)  remove random variations.

Question 5

What is a time-series forecasting model?

Accepted Answer

A time-series foreca...

Question 6

In trend projection,a negative regression slope is mathematically impossible.

Accepted Answer

A) True 
 B)False

Question 7

In trend projection,the trend component is the slope of the regression equation.

Accepted Answer

A) True 
 B)False

Question 8

Increasing the number of periods in a moving average will accomplish greater smoothing,but at the expense of:

Accepted Answer

A)  manager understanding.
B)  accuracy.
C)  stability.
D)  sensitivity to real changes in the data.
E)  All of the above are diminished when the number of periods increases.

Question 9

When one constant is used to smooth the forecast average and a second constant is used to smooth the trend,the forecasting method is ________.

Accepted Answer

exponential smoothing with tre...

Question 10

Jim's department at a local department store has tracked the sales of a product over the last ten weeks.Forecast demand using exponential smoothing with an alpha of 0.4,and an initial forecast of 28.0 for period 1.Calculate the MAD.Calculate the tracking signal.What do you recommend?

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The tracking signal RSFE/MAD ...

Question 11

Which of the following is not present in a time series?

Accepted Answer

A)  seasonality
B)  operational variations
C)  trend
D)  cycles
E)  random variations

Question 12

Forecasts of individual products tend to be more accurate than forecasts of product families.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  naïve approach
B)  moving average approach
C)  weighted moving average approach
D)  exponential smoothing approach
E)  trend projection

Question 14

John's House of Pancakes uses a weighted moving average method to forecast pancake sales.It assigns a weight of 5 to the previous month's demand,3 to demand two months ago,and 1 to demand three months ago.If sales amounted to 1000 pancakes in May,2200 pancakes in June,and 3000 pancakes in July,what should be the forecast for August?

Accepted Answer

A)  2400
B)  2511
C)  2067
D)  3767
E)  1622

Question 15

Many services maintain records of sales noting:

Accepted Answer

A)  the day of the week.
B)  unusual events.
C)  the weather.
D)  holiday impacts.
E)  all of the above.

Question 16

The smoothing constant is a weighting factor used in ________.

Accepted Answer

exponentia...

Question 17

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Accepted Answer

A)  0
B)  1 divided by the number of periods
C)  0.5
D)  1.0
E)  cannot be determined

Question 18

Given forecast errors of -1,4,8,and -3,what is the mean absolute deviation?

Accepted Answer

A)  2
B)  3
C)  4
D)  8
E)  16

Question 19

Taco Bell's unique employee scheduling practices are partly the result of using:

Accepted Answer

A)  point-of-sale computers to track food sales in 15 minute intervals.
B)  focus forecasting.
C)  a six-week moving average forecasting technique.
D)  multiple regression.
E)  A and C are both correct.

Question 20

What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals.

Accepted Answer

A tracking signal is a measure of how we...

Exam 4: Forecasting

Given forecast errors of -1,4,8,and -3,what is the mean absolute deviation?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

In trend projection,a negative regression slope is mathematically impossible.

Correct Answer
verified

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Correct Answer
verified

Which of the following is not present in a time series?

Correct Answer
verified

Forecasts of individual products tend to be more accurate than forecasts of product families.

Correct Answer
verified

What is a time-series forecasting model?

Correct Answer
verified
A time-series foreca...
View Answer

What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals.

Correct Answer
verified
A tracking signal is a measure of how we...
View Answer

The smoothing constant is a weighting factor used in ________.

Correct Answer
verified
exponentia...
View Answer

Which of the following is TRUE regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

Correct Answer
verified

Jim's department at a local department store has tracked the sales of a product over the last ten weeks.Forecast demand using exponential smoothing with an alpha of 0.4,and an initial forecast of 28.0 for period 1.Calculate the MAD.Calculate the tracking signal.What do you recommend?

Correct Answer
verified
The tracking signal RSFE/MAD ...
View Answer

When one constant is used to smooth the forecast average and a second constant is used to smooth the trend,the forecasting method is ________.

Correct Answer
verified
exponential smoothing with tre...
View Answer

Taco Bell's unique employee scheduling practices are partly the result of using:

Correct Answer
verified

Increasing the number of periods in a moving average will accomplish greater smoothing,but at the expense of:

Correct Answer
verified

The fundamental difference between cycles and seasonality is the:

Correct Answer
verified

Many services maintain records of sales noting:

Correct Answer
verified

Correct Answer
verified
The average value multiplied by each day...
View Answer

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

Correct Answer
verified

In trend projection,the trend component is the slope of the regression equation.

Correct Answer
verified

Exam 4: Forecasting

Given forecast errors of -1,4,8,and -3,what is the mean absolute deviation?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In trend projection,a negative regression slope is mathematically impossible.

Correct AnswerverifiedShow Answer

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

Correct AnswerverifiedShow Answer

Which of the following is not present in a time series?

Correct AnswerverifiedShow Answer

Forecasts of individual products tend to be more accurate than forecasts of product families.

Correct AnswerverifiedShow Answer

What is a time-series forecasting model?

Correct AnswerverifiedA time-series foreca...View AnswerShow Answer

What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals.

Correct AnswerverifiedA tracking signal is a measure of how we...View AnswerShow Answer

The smoothing constant is a weighting factor used in ________.

Correct Answerverifiedexponentia...View AnswerShow Answer

Which of the following is TRUE regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

Correct AnswerverifiedShow Answer

Jim's department at a local department store has tracked the sales of a product over the last ten weeks.Forecast demand using exponential smoothing with an alpha of 0.4,and an initial forecast of 28.0 for period 1.Calculate the MAD.Calculate the tracking signal.What do you recommend?

Correct Answerverified The tracking signal RSFE/MAD ...View AnswerShow Answer

When one constant is used to smooth the forecast average and a second constant is used to smooth the trend,the forecasting method is ________.

Correct Answerverifiedexponential smoothing with tre...View AnswerShow Answer

Taco Bell's unique employee scheduling practices are partly the result of using:

Correct AnswerverifiedShow Answer

Increasing the number of periods in a moving average will accomplish greater smoothing,but at the expense of:

Correct AnswerverifiedShow Answer

The fundamental difference between cycles and seasonality is the:

Correct AnswerverifiedShow Answer

Many services maintain records of sales noting:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe average value multiplied by each day...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

In trend projection,the trend component is the slope of the regression equation.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A time-series foreca...
View Answer

Correct Answer
verified
A tracking signal is a measure of how we...
View Answer

Correct Answer
verified
exponentia...
View Answer

Correct Answer
verified

Correct Answer
verified
The tracking signal RSFE/MAD ...
View Answer

Correct Answer
verified
exponential smoothing with tre...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The average value multiplied by each day...
View Answer

Correct Answer
verified

Correct Answer
verified