OPSY 5315 - Rao- Exam 2 Study Guide with
ANSWERS 100% Correct
A fast-food restaurant is an example of
A. high customization and high degree of labor.
B. high customization and low degree of labor.
C. low customization and high degree of labor.
D. low customization and low degree of labor. Corrects -low customization and low degree of labor.
Which of the following statements is NOT true?
A. Adding flexibility to the production process can be a major competitive advantage. Building flexibility
into a production process is usually inexpensive, but difficult.
B. Selecting the best equipment requires understanding the specific industry and available processes and
technology.
C. The selection of equipment requires considering cost, cash flow, market stability, quality, capacity, and
flexibility.
D. Selection of a particular process strategy requires decisions about equipment and technology.
Corrects -Adding flexibility to the production process can be a major competitive advantage. Building
flexibility into a production process is usually inexpensive, but difficult.
What is a flowchart with time added on the horizontal axis?
A. process chart
B. process mapping
C. service blueprinting
D. CNC Corrects -process mapping
What is the fundamental rethinking of business processes to bring about dramatic improvements in
performance?
,A. process redesign
B. process design
C. process strategy
D. process analysis Corrects -process redesign
Which of the following is an example of technology's impact on wholesale/retail trade industry?
A.interactive TV
B. automatic toll booths
C. bar-coded data
D. automatic teller machines Corrects -bar-coded data
Forecasting time horizons include:
a. long range
b. medium range
c. short range
d. all of the above Corrects -all of the above
Qualitative methods of forecasting include:
a. sales force composite
b. jury of executive opinion
c. consumer market survey
d. exponential smoothing
e. all except (d) Corrects -all except (d)
,The difference between a moving-average model and an exponential smoothing model is
that_____________. Corrects -exponential smoothing is a weighted moving-average model in which all
prior values are weighted with a set of exponentially declining weights
Three popular measures of forecast accuracy are:
a. total error, average error, and mean error
b. average error, median error, and maximum error
c. median error, minimum error, and maximum absolute error
d. mean absolute deviation, mean squared error, and mean absolute percent error Corrects -mean
absolute deviation, mean squared error, and mean absolute percent error
Average demand for iPods in the Rome, Italy, Apple store is 800 units per month. The May monthly index
is 1.25. What is the seasonally adjusted sales forecast for May?
a. 640 units
b. 798.75 units
c. 800 units
d. 1,000 units
e. cannot be calculated with the information given Corrects -1,000 units
The main difference between simple and multiple regression is __________. Corrects -simple regression
has only one independent variable
The tracking signal is the:
a. Standard error of the estimate
b. cumulative error
c. mean absolute deviation (MAD)
d. ratio of the cumulative error to MAD
, e. mean absolute percent error (MAPE) Corrects -ratio of the cumulative error to MAD
Time-series patterns that repeat themselves after a period of days or weeks are called __________
a. cycles
b. seasonality
c. trends Corrects -seasonality
Which of the following smoothing constants would make an exponential smoothing forecast equivalent
to a naïve forecast?
a. .5
b. 1.0
c. 0 Corrects -1.0
Which of the following statements about time-series forecasting is true?
a. It is based on the assumption that the analysis of past demand helps predict future demand.
b. It is based on the assumption that future demand will be the same as past demand.
c. Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than
associative forecasting. Corrects -It is based on the assumption that the analysis of past demand helps
predict future demand.
Which time-series model assumes that demand in the next period will be equal to the most recent
period's demand?
a. Moving average approach
b. Naïve approach
c. Exponential smoothing approach Corrects -Naïve approach
ANSWERS 100% Correct
A fast-food restaurant is an example of
A. high customization and high degree of labor.
B. high customization and low degree of labor.
C. low customization and high degree of labor.
D. low customization and low degree of labor. Corrects -low customization and low degree of labor.
Which of the following statements is NOT true?
A. Adding flexibility to the production process can be a major competitive advantage. Building flexibility
into a production process is usually inexpensive, but difficult.
B. Selecting the best equipment requires understanding the specific industry and available processes and
technology.
C. The selection of equipment requires considering cost, cash flow, market stability, quality, capacity, and
flexibility.
D. Selection of a particular process strategy requires decisions about equipment and technology.
Corrects -Adding flexibility to the production process can be a major competitive advantage. Building
flexibility into a production process is usually inexpensive, but difficult.
What is a flowchart with time added on the horizontal axis?
A. process chart
B. process mapping
C. service blueprinting
D. CNC Corrects -process mapping
What is the fundamental rethinking of business processes to bring about dramatic improvements in
performance?
,A. process redesign
B. process design
C. process strategy
D. process analysis Corrects -process redesign
Which of the following is an example of technology's impact on wholesale/retail trade industry?
A.interactive TV
B. automatic toll booths
C. bar-coded data
D. automatic teller machines Corrects -bar-coded data
Forecasting time horizons include:
a. long range
b. medium range
c. short range
d. all of the above Corrects -all of the above
Qualitative methods of forecasting include:
a. sales force composite
b. jury of executive opinion
c. consumer market survey
d. exponential smoothing
e. all except (d) Corrects -all except (d)
,The difference between a moving-average model and an exponential smoothing model is
that_____________. Corrects -exponential smoothing is a weighted moving-average model in which all
prior values are weighted with a set of exponentially declining weights
Three popular measures of forecast accuracy are:
a. total error, average error, and mean error
b. average error, median error, and maximum error
c. median error, minimum error, and maximum absolute error
d. mean absolute deviation, mean squared error, and mean absolute percent error Corrects -mean
absolute deviation, mean squared error, and mean absolute percent error
Average demand for iPods in the Rome, Italy, Apple store is 800 units per month. The May monthly index
is 1.25. What is the seasonally adjusted sales forecast for May?
a. 640 units
b. 798.75 units
c. 800 units
d. 1,000 units
e. cannot be calculated with the information given Corrects -1,000 units
The main difference between simple and multiple regression is __________. Corrects -simple regression
has only one independent variable
The tracking signal is the:
a. Standard error of the estimate
b. cumulative error
c. mean absolute deviation (MAD)
d. ratio of the cumulative error to MAD
, e. mean absolute percent error (MAPE) Corrects -ratio of the cumulative error to MAD
Time-series patterns that repeat themselves after a period of days or weeks are called __________
a. cycles
b. seasonality
c. trends Corrects -seasonality
Which of the following smoothing constants would make an exponential smoothing forecast equivalent
to a naïve forecast?
a. .5
b. 1.0
c. 0 Corrects -1.0
Which of the following statements about time-series forecasting is true?
a. It is based on the assumption that the analysis of past demand helps predict future demand.
b. It is based on the assumption that future demand will be the same as past demand.
c. Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than
associative forecasting. Corrects -It is based on the assumption that the analysis of past demand helps
predict future demand.
Which time-series model assumes that demand in the next period will be equal to the most recent
period's demand?
a. Moving average approach
b. Naïve approach
c. Exponential smoothing approach Corrects -Naïve approach
