ISDS 3115 EXAM QUESTIONS WITH
100% CORRECT ANSWERS | LATEST
VERSION 2025/2026.
A naive forecast for September sales of a product would be equal to the forecast for August. -
ANS FALSE
The forecasting time horizon and the forecasting techniques used to vary over the life cycle of a
product. - ANS TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. -
ANS TRUE
Forecasts of individual products tend to be more accurate than forecasts of product families. -
ANS FALSE
Most forecasting techniques assume that there is some underlying stability in the system. -
ANS TRUE
The sales force composite forecasting method relies on salespersons' estimates of expected
sales. - ANS TRUE
A time-series model uses a series of past data points to make the forecast - ANS TRUE
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The quarterly "make meeting" of Lexus dealers is an example of a sales force composite
forecast. - ANS TRUE
Cycles and random variation are both components of time series. - ANS TRUE
A naive forecast for September sales of a product would be equal to the sales in August. -
ANS TRUE
One advantage of exponential smoothing is the limited amount of record keeping involved. -
ANS TRUE
The larger the number of periods in the simple moving average forecasting method, the greater
the method's responsiveness to changes in demand. - ANS 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. - ANS TRUE
Mean squared error and Coefficient of Correlation are two measures of the overall error of a
forecasting model. - ANS FALSE
In trend projection, the trend component is the slope of the regression equation. - ANS TRUE
In trend projection, a negative regression slope is mathematically impossible. - ANS FALSE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals. -
ANS 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. - ANS FALSE
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
100% CORRECT ANSWERS | LATEST
VERSION 2025/2026.
A naive forecast for September sales of a product would be equal to the forecast for August. -
ANS FALSE
The forecasting time horizon and the forecasting techniques used to vary over the life cycle of a
product. - ANS TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. -
ANS TRUE
Forecasts of individual products tend to be more accurate than forecasts of product families. -
ANS FALSE
Most forecasting techniques assume that there is some underlying stability in the system. -
ANS TRUE
The sales force composite forecasting method relies on salespersons' estimates of expected
sales. - ANS TRUE
A time-series model uses a series of past data points to make the forecast - ANS TRUE
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The quarterly "make meeting" of Lexus dealers is an example of a sales force composite
forecast. - ANS TRUE
Cycles and random variation are both components of time series. - ANS TRUE
A naive forecast for September sales of a product would be equal to the sales in August. -
ANS TRUE
One advantage of exponential smoothing is the limited amount of record keeping involved. -
ANS TRUE
The larger the number of periods in the simple moving average forecasting method, the greater
the method's responsiveness to changes in demand. - ANS 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. - ANS TRUE
Mean squared error and Coefficient of Correlation are two measures of the overall error of a
forecasting model. - ANS FALSE
In trend projection, the trend component is the slope of the regression equation. - ANS TRUE
In trend projection, a negative regression slope is mathematically impossible. - ANS FALSE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals. -
ANS 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. - ANS FALSE
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
