ISDS 3115 Exam Questions and Answers Already Passed Latest Update 2025-2026
A naive forecast for September sales of a product would be equal to the forecast for August. -
Answers FALSE
The forecasting time horizon and the forecasting techniques used to vary over the life cycle of a
product. - Answers TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. -
Answers TRUE
Forecasts of individual products tend to be more accurate than forecasts of product families. -
Answers FALSE
Most forecasting techniques assume that there is some underlying stability in the system. -
Answers TRUE
The sales force composite forecasting method relies on salespersons' estimates of expected
sales. - Answers TRUE
A time-series model uses a series of past data points to make the forecast - Answers TRUE
The quarterly "make meeting" of Lexus dealers is an example of a sales force composite
forecast. - Answers TRUE
Cycles and random variation are both components of time series. - Answers TRUE
A naive forecast for September sales of a product would be equal to the sales in August. -
Answers TRUE
One advantage of exponential smoothing is the limited amount of record keeping involved. -
Answers TRUE
The larger the number of periods in the simple moving average forecasting method, the greater
the method's responsiveness to changes in demand. - Answers FALSE
Forecast including trend is an exponential smoothing technique that utilizes two smoothing
constants: one for the average level of the forecast and one for its trend. - Answers TRUE
Mean squared error and Coefficient of Correlation are two measures of the overall error of a
forecasting model. - Answers FALSE
In trend projection, the trend component is the slope of the regression equation. - Answers
TRUE
In trend projection, a negative regression slope is mathematically impossible. - Answers FALSE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals. - Answers
, TRUE
If a quarterly seasonal index has been calculated at 1.55 for the October-December quarter, then
raw data for that quarter must be multiplied by 1.55 so that the quarter can be fairly compare to
other quarters. - Answers FALSE
The best way to forecast a business cycle is by finding a leading variable. - Answers TRUE
Linear regression analysis is a straight-line mathematical model to describe the functional
relationships between independent and dependent variables. - Answers TRUE
The larger the standard error of the estimate, the more accurate the forecasting model. -
Answers FALSE
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for
every unit of time that passes. - Answers TRUE
In a regression equation where Y is demand and X is advertising, a coefficient of determination
(r squared) of .70 means that 70% of the variance in advertising is explained by demand. -
Answers FALSE
Demand cycles for individual products can be driven by product life cycles. - Answers TRUE
If a forecast is consistently greater than (or less than) actual values, the forecast is said to be
biased. - Answers TRUE
Focus forecasting tries a variety of computer models and selects the best one for a particular
application. - Answers TRUE
Many service firms use point-of-sale computers to collect detailed records needed for accurate
short-term forecasts. - Answers TRUE
What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts
regarding the six Orlando parks? - Answers yesterday's forecasted attendance and yesterday's
actual attendance
Using an exponential smoothing modeal with smoothing constant alpha= .20, how much weight
would be assigned to the 2nd most recent period? - Answers .16
Forecasts: - Answers are rarely perfect
One use of short-range forecasts is to determine - Answers job assignments
Forecasts are usually classified by time horizon into three categories: - Answers short-range,
medium-range, and long-range
A forecast with a time horizon of about 3 months to 3 years is typically called a - Answers
A naive forecast for September sales of a product would be equal to the forecast for August. -
Answers FALSE
The forecasting time horizon and the forecasting techniques used to vary over the life cycle of a
product. - Answers TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. -
Answers TRUE
Forecasts of individual products tend to be more accurate than forecasts of product families. -
Answers FALSE
Most forecasting techniques assume that there is some underlying stability in the system. -
Answers TRUE
The sales force composite forecasting method relies on salespersons' estimates of expected
sales. - Answers TRUE
A time-series model uses a series of past data points to make the forecast - Answers TRUE
The quarterly "make meeting" of Lexus dealers is an example of a sales force composite
forecast. - Answers TRUE
Cycles and random variation are both components of time series. - Answers TRUE
A naive forecast for September sales of a product would be equal to the sales in August. -
Answers TRUE
One advantage of exponential smoothing is the limited amount of record keeping involved. -
Answers TRUE
The larger the number of periods in the simple moving average forecasting method, the greater
the method's responsiveness to changes in demand. - Answers FALSE
Forecast including trend is an exponential smoothing technique that utilizes two smoothing
constants: one for the average level of the forecast and one for its trend. - Answers TRUE
Mean squared error and Coefficient of Correlation are two measures of the overall error of a
forecasting model. - Answers FALSE
In trend projection, the trend component is the slope of the regression equation. - Answers
TRUE
In trend projection, a negative regression slope is mathematically impossible. - Answers FALSE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals. - Answers
, TRUE
If a quarterly seasonal index has been calculated at 1.55 for the October-December quarter, then
raw data for that quarter must be multiplied by 1.55 so that the quarter can be fairly compare to
other quarters. - Answers FALSE
The best way to forecast a business cycle is by finding a leading variable. - Answers TRUE
Linear regression analysis is a straight-line mathematical model to describe the functional
relationships between independent and dependent variables. - Answers TRUE
The larger the standard error of the estimate, the more accurate the forecasting model. -
Answers FALSE
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for
every unit of time that passes. - Answers TRUE
In a regression equation where Y is demand and X is advertising, a coefficient of determination
(r squared) of .70 means that 70% of the variance in advertising is explained by demand. -
Answers FALSE
Demand cycles for individual products can be driven by product life cycles. - Answers TRUE
If a forecast is consistently greater than (or less than) actual values, the forecast is said to be
biased. - Answers TRUE
Focus forecasting tries a variety of computer models and selects the best one for a particular
application. - Answers TRUE
Many service firms use point-of-sale computers to collect detailed records needed for accurate
short-term forecasts. - Answers TRUE
What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts
regarding the six Orlando parks? - Answers yesterday's forecasted attendance and yesterday's
actual attendance
Using an exponential smoothing modeal with smoothing constant alpha= .20, how much weight
would be assigned to the 2nd most recent period? - Answers .16
Forecasts: - Answers are rarely perfect
One use of short-range forecasts is to determine - Answers job assignments
Forecasts are usually classified by time horizon into three categories: - Answers short-range,
medium-range, and long-range
A forecast with a time horizon of about 3 months to 3 years is typically called a - Answers
