OPMA FINAL EXAM REVIEW (SUMMER 2026/2027) | STUDY GUIDE, MCQS, PRACTICE
QUESTIONS AND EXAM PREP
Which of the following forecasting methodologies is considered a time series forecasting
technique? - ANS ✔✔simple moving average
A company wants to forecast demand using the weighted moving average. If the company uses
two prior yearly sales values (i.e., year 2012 = 110 and year 2013 = 130), and we want to weight
year 2012 at 10 percent and year 2013 at 90 percent, which of the following is the weighted
moving average forecast for year 2014? - ANS ✔✔Forecast for 2014 = (110x.10)+(130x.90)= 128
Given a prior forecast demand value of 230, a related actual demand value of 250, and a
smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the
following period? - ANS ✔✔230 + 0.1 x (250 - 230) = 232
A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The
respective forecasts were 120 for all four years. Which of the following is the resulting MAD
value that can be computed from these data? - ANS ✔✔C MAD = ABS[(100 - 120) + (105 - 120) +
(135 - 120) + (150 - 120)]/4 = 80/4 = 20.
If you were selecting from a variety of forecasting models based on MAD, which of the following
MAD values from the same data would reflect the most accurate model? - ANS ✔✔0.2 (MAD
smallest value)
A company hires you to develop a linear regression forecasting model. Based on the company's
historical sales information, you determine the intercept value of the model to be 1,200. You
also find the slope value is minus 50. If, after developing the model, you are given a value of X =
10, which of the following is the resulting forecast value using this model? - ANS ✔✔The linear
regression line is of the form Y = a + bX, where Y is the value of the dependent variable that we
are solving for, a is the Y intercept, b is the slope, and X is the independent variable. Hence, Y =
1,200 + (-50) x 10 = 700.
QUESTIONS AND EXAM PREP
Which of the following forecasting methodologies is considered a time series forecasting
technique? - ANS ✔✔simple moving average
A company wants to forecast demand using the weighted moving average. If the company uses
two prior yearly sales values (i.e., year 2012 = 110 and year 2013 = 130), and we want to weight
year 2012 at 10 percent and year 2013 at 90 percent, which of the following is the weighted
moving average forecast for year 2014? - ANS ✔✔Forecast for 2014 = (110x.10)+(130x.90)= 128
Given a prior forecast demand value of 230, a related actual demand value of 250, and a
smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the
following period? - ANS ✔✔230 + 0.1 x (250 - 230) = 232
A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The
respective forecasts were 120 for all four years. Which of the following is the resulting MAD
value that can be computed from these data? - ANS ✔✔C MAD = ABS[(100 - 120) + (105 - 120) +
(135 - 120) + (150 - 120)]/4 = 80/4 = 20.
If you were selecting from a variety of forecasting models based on MAD, which of the following
MAD values from the same data would reflect the most accurate model? - ANS ✔✔0.2 (MAD
smallest value)
A company hires you to develop a linear regression forecasting model. Based on the company's
historical sales information, you determine the intercept value of the model to be 1,200. You
also find the slope value is minus 50. If, after developing the model, you are given a value of X =
10, which of the following is the resulting forecast value using this model? - ANS ✔✔The linear
regression line is of the form Y = a + bX, where Y is the value of the dependent variable that we
are solving for, a is the Y intercept, b is the slope, and X is the independent variable. Hence, Y =
1,200 + (-50) x 10 = 700.
