CBAD 292: Exam 2 – Building Proficiency in
Business Fundamentals
All of the following are true about a cyclical pattern except - correct answer ✔✔It usually is easier to
forecast than a seasonal pattern due to less variability
All of the following are true about a stationary time series except - correct answer ✔✔There is no
variability in the time series over time
All of the following are true about qualitative forecasting methods except - correct answer ✔✔They
assume the pattern of the past will continue into the future
All of the following are true about time series methods except - correct answer ✔✔They involve the use
of expert judgment to develop forecasts
Forecast errors - correct answer ✔✔are the differences between actual and forecast values
Gradual shifting of a time series to relatively higher or lower values over a long period of time is called -
correct answer ✔✔trend
If data for a time series analysis is collected on an annual basis only, which pattern does not need to be
considered - correct answer ✔✔seasonal
In situations where you need to compare forecasting methods for different time periods, the most
appropriate accuracy measure is - correct answer ✔✔MAPE
Linear trend is calculated as Y(t)=28.5+0.75t. The trend projection for period 15 is - correct answer
✔✔39.75
One measure of the accuracy of a forecasting model is the - correct answer ✔✔mean absolute error
, Seasonal patterns - correct answer ✔✔are regular repeated patterns
The focus of smoothing methods is to smooth out - correct answer ✔✔random fluctuations
The forecasting method that is appropriate when the time series has no significant trend, cyclical, or
seasonal pattern is - correct answer ✔✔moving average
The trend pattern is easy to identify by using - correct answer ✔✔regression analysis
To select a value for α for exponential smoothing - correct answer ✔✔All of the alternatives are true.
(use a small α when the series varies substantially, use a large α when the series has little random
variability, use a value between 0 and 1)
Using a naive forecasting method, the forecast for next week's sales volume equals - correct answer
✔✔the most recent week's sales volume
Using exponential smoothing, the demand forecast for time period 10 equals the demand forecast for
time period 9 plus - correct answer ✔✔α times (the error in the demand forecast for time period 9)
Whenever a categorical variable such as season has k levels, the number of dummy variables required -
correct answer ✔✔k - 1
Which of the following exponential smoothing constant values puts the same weight on the most recent
time series value as does a 5-period moving average - correct answer ✔✔α = .2
Which of the following forecasting methods puts the least weight on the most recent time series value -
correct answer ✔✔exponential smoothing with α = .2
A four-period moving average forecast for period 10 would be found by averaging the values from
periods 10, 9, 8, and 7 - correct answer ✔✔False
Business Fundamentals
All of the following are true about a cyclical pattern except - correct answer ✔✔It usually is easier to
forecast than a seasonal pattern due to less variability
All of the following are true about a stationary time series except - correct answer ✔✔There is no
variability in the time series over time
All of the following are true about qualitative forecasting methods except - correct answer ✔✔They
assume the pattern of the past will continue into the future
All of the following are true about time series methods except - correct answer ✔✔They involve the use
of expert judgment to develop forecasts
Forecast errors - correct answer ✔✔are the differences between actual and forecast values
Gradual shifting of a time series to relatively higher or lower values over a long period of time is called -
correct answer ✔✔trend
If data for a time series analysis is collected on an annual basis only, which pattern does not need to be
considered - correct answer ✔✔seasonal
In situations where you need to compare forecasting methods for different time periods, the most
appropriate accuracy measure is - correct answer ✔✔MAPE
Linear trend is calculated as Y(t)=28.5+0.75t. The trend projection for period 15 is - correct answer
✔✔39.75
One measure of the accuracy of a forecasting model is the - correct answer ✔✔mean absolute error
, Seasonal patterns - correct answer ✔✔are regular repeated patterns
The focus of smoothing methods is to smooth out - correct answer ✔✔random fluctuations
The forecasting method that is appropriate when the time series has no significant trend, cyclical, or
seasonal pattern is - correct answer ✔✔moving average
The trend pattern is easy to identify by using - correct answer ✔✔regression analysis
To select a value for α for exponential smoothing - correct answer ✔✔All of the alternatives are true.
(use a small α when the series varies substantially, use a large α when the series has little random
variability, use a value between 0 and 1)
Using a naive forecasting method, the forecast for next week's sales volume equals - correct answer
✔✔the most recent week's sales volume
Using exponential smoothing, the demand forecast for time period 10 equals the demand forecast for
time period 9 plus - correct answer ✔✔α times (the error in the demand forecast for time period 9)
Whenever a categorical variable such as season has k levels, the number of dummy variables required -
correct answer ✔✔k - 1
Which of the following exponential smoothing constant values puts the same weight on the most recent
time series value as does a 5-period moving average - correct answer ✔✔α = .2
Which of the following forecasting methods puts the least weight on the most recent time series value -
correct answer ✔✔exponential smoothing with α = .2
A four-period moving average forecast for period 10 would be found by averaging the values from
periods 10, 9, 8, and 7 - correct answer ✔✔False
