Forecasting

This question bank verified by Studydeets

All Questions

Question 1

Free

True/False

Forecasting techniques generally assume an existing causal system that will continue to exist in the future.

Choose correct answer/s

True

False

Check answer

Question 2

Free

True/False

For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques.

Choose correct answer/s

True

False

Check answer

Question 3

Free

True/False

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast.

Choose correct answer/s

True

False

Check answer

Question 4

Free

True/False

Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.

Choose correct answer/s

True

False

Check answer

Question 5

Free

True/False

Forecasts help managers both to plan the system itself and to provide valuable information for using the system.

Choose correct answer/s

True

False

Check answer

Question 6

True/False

Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.

Choose correct answer/s

True

False

To unlock the question

Question 7

True/False

When new products or services are introduced, focus forecasting models are an attractive option.

Choose correct answer/s

True

False

To unlock the question

Question 8

True/False

The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood.

Choose correct answer/s

True

False

To unlock the question

Question 9

True/False

Forecasts based on time-series (historical) data are referred to as associative forecasts.

Choose correct answer/s

True

False

To unlock the question

Question 10

True/False

Time-series techniques involve the identification of explanatory variables that can be used to predict future demand.

Choose correct answer/s

True

False

To unlock the question

Question 11

True/False

A consumer survey is an easy and sure way to obtain accurate input from future customers since most people enjoy participating in surveys.

Choose correct answer/s

True

False

To unlock the question

Question 12

True/False

The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast.

Choose correct answer/s

True

False

To unlock the question

Question 13

True/False

The shorter the forecast period, the more accurately the forecasts tend to track what actually happens.

Choose correct answer/s

True

False

To unlock the question

Question 14

True/False

Forecasting techniques that are based on time-series data assume that future values of the series will duplicate past values.

Choose correct answer/s

True

False

To unlock the question

Question 15

True/False

Trend-adjusted exponential smoothing uses double smoothing to add twice the forecast error to last period's actual demand.

Choose correct answer/s

True

False

To unlock the question

Question 16

True/False

The naive approach to forecasting requires a linear trend line.

Choose correct answer/s

True

False

To unlock the question

Question 17

True/False

The naive forecast is limited in its application to series that reflect no trend or seasonality.

Choose correct answer/s

True

False

To unlock the question

Question 18

True/False

The naive forecast can serve as a quick and easy standard of comparison against which to judge the cost and accuracy of other techniques.

Choose correct answer/s

True

False

To unlock the question

Question 19

True/False

A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average.

Choose correct answer/s

True

False

To unlock the question

Question 20

True/False

In order to update a moving average forecast, the values of each data point in the average must be known.

Choose correct answer/s

True

False

To unlock the question