ISDS 3115 EXAM 1 QUESTIONS WITH VERIFIED
ANSWERS
measure forecast accuracy - Answers - The primary purpose of the mean absolute
deviation (MAD) in forecasting is to
demand forecast - Answers - A forecast that projects a company's sales is a(n):
3.5 - Answers - The last four months of sales were 8, 10, 15, and 9 units. The last four
forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is:
Bias - Answers - 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:
1 - Answers - Which of the following smoothing constants would make an exponential
smoothing forecast equivalent to a naïve forecast?
Short-range, medium-range, and long-range - Answers - Forecasts are usually
classified into three categories including:
It is based on the assumption that the analysis of past demand helps predict future
demand. - Answers - Which of the following statements about time-series forecasting is
true?
long-range time horizon - Answers - Forecasts used for new product planning, capital
expenditures, facility location or expansion, and R&D typically utilize a__________
The Delphi method - Answers - Which of the following uses three types of participants:
decision makers, staff personnel, and respondents?
63.8 - Answers - Given last periods forecast of 65, and last periods demand of 62, what
is the simple exponential smoothing forecast with an alpha of .4 for the next period?
100.6 - Answers - Given an actual demand of 103, a previous forecast value of 99, and
an alpha of .4, the exponential smoothing forecast for the next period would be:
0.684 - Answers - A seasonal index for a monthly series is about to be calculated on the
basis of three years' accumulation of data. The three previous July values were 110,
150, and 130. The average over all months is 190. The approximate seasonal index for
July is:
4 - Answers - Given forecast errors of -1, 4, 8, and -3, what is the mean absolute
deviation?
, 44 - Answers - Given the following data about monthly demand, what is the approximate
forecast for May using a four month moving average?
November = 39
December = 36
January = 40
February = 42
March = 48
April = 46
ratio of cumulative error/MAD - Answers - The tracking signal is the:
is an indication that product demand is declining - Answers - For a given product
demand, the time-series trend equation is 53 - 4X. The negative sign on the slope of the
equation:
Exponential smoothing - Answers - Quantitative methods of forecasting include
1000 units - Answers - Demand for a certain product is forecast to be 800 units per
month, averaged over all 12 months of the year. The product follows a seasonal pattern,
for which the January monthly index is 1.25. What is the seasonally-adjusted sales
forecast for January?
132 - Answers - If demand is 106 during January, 120 in February, 134 in March, and
142 in April, what is the 3-month simple moving average for May?
seasonality - Answers - Time-series patterns that repeat themselves after a period of
days or weeks are called
40.0 - Answers - A time-series trend equation is 25.3 + 2.1X. What is your forecast for
period 7?
The correlation between sales and advertising is positive. - Answers - A regression
model is used to forecast sales based on advertising dollars spent. The regression line
is y=500+35x and the coefficient of determination is .90. Which is the best statement
about this forecasting model?
Naïve approach - Answers - Which time-series model assumes that demand in the next
period will be equal to the most recent period's demand?
correlation coefficient - Answers - The degree or strength of a relationship between two
variables is shown by the__________
58.9 - Answers - Given an actual demand of 61, a previous forecast value of 58, and an
alpha of .3, the exponential smoothing forecast for the next period would be:
ANSWERS
measure forecast accuracy - Answers - The primary purpose of the mean absolute
deviation (MAD) in forecasting is to
demand forecast - Answers - A forecast that projects a company's sales is a(n):
3.5 - Answers - The last four months of sales were 8, 10, 15, and 9 units. The last four
forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is:
Bias - Answers - 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:
1 - Answers - Which of the following smoothing constants would make an exponential
smoothing forecast equivalent to a naïve forecast?
Short-range, medium-range, and long-range - Answers - Forecasts are usually
classified into three categories including:
It is based on the assumption that the analysis of past demand helps predict future
demand. - Answers - Which of the following statements about time-series forecasting is
true?
long-range time horizon - Answers - Forecasts used for new product planning, capital
expenditures, facility location or expansion, and R&D typically utilize a__________
The Delphi method - Answers - Which of the following uses three types of participants:
decision makers, staff personnel, and respondents?
63.8 - Answers - Given last periods forecast of 65, and last periods demand of 62, what
is the simple exponential smoothing forecast with an alpha of .4 for the next period?
100.6 - Answers - Given an actual demand of 103, a previous forecast value of 99, and
an alpha of .4, the exponential smoothing forecast for the next period would be:
0.684 - Answers - A seasonal index for a monthly series is about to be calculated on the
basis of three years' accumulation of data. The three previous July values were 110,
150, and 130. The average over all months is 190. The approximate seasonal index for
July is:
4 - Answers - Given forecast errors of -1, 4, 8, and -3, what is the mean absolute
deviation?
, 44 - Answers - Given the following data about monthly demand, what is the approximate
forecast for May using a four month moving average?
November = 39
December = 36
January = 40
February = 42
March = 48
April = 46
ratio of cumulative error/MAD - Answers - The tracking signal is the:
is an indication that product demand is declining - Answers - For a given product
demand, the time-series trend equation is 53 - 4X. The negative sign on the slope of the
equation:
Exponential smoothing - Answers - Quantitative methods of forecasting include
1000 units - Answers - Demand for a certain product is forecast to be 800 units per
month, averaged over all 12 months of the year. The product follows a seasonal pattern,
for which the January monthly index is 1.25. What is the seasonally-adjusted sales
forecast for January?
132 - Answers - If demand is 106 during January, 120 in February, 134 in March, and
142 in April, what is the 3-month simple moving average for May?
seasonality - Answers - Time-series patterns that repeat themselves after a period of
days or weeks are called
40.0 - Answers - A time-series trend equation is 25.3 + 2.1X. What is your forecast for
period 7?
The correlation between sales and advertising is positive. - Answers - A regression
model is used to forecast sales based on advertising dollars spent. The regression line
is y=500+35x and the coefficient of determination is .90. Which is the best statement
about this forecasting model?
Naïve approach - Answers - Which time-series model assumes that demand in the next
period will be equal to the most recent period's demand?
correlation coefficient - Answers - The degree or strength of a relationship between two
variables is shown by the__________
58.9 - Answers - Given an actual demand of 61, a previous forecast value of 58, and an
alpha of .3, the exponential smoothing forecast for the next period would be:
