ISDS 3115 CHAPTER 4 EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
The forecasting time horizon and the forecasting techniques used tend to vary over the lifestyle
of a product. - ANS TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning -
ANS TRUE
More 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
The quarterly "make meeting" of Lexus dealers is an example of a sales force composite
forecast. - ANS TRUE
Cycles and random variations are both components of time series. - ANS TRUE
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, 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
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
In trend projection, the trend component is the slope of the regression equation. - ANS TRUE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals -
ANS TRUE
The best way to forecast a business cycle is by finding a leading variable. - ANS TRUE
Linear-regression analysis is a straight-line mathematical model to describe the functional
relationships between independent and dependent variables. - ANS TRUE
Demand cycles for individual products can be driven by product life cycles. - ANS TRUE
Focus forecasting tries a variety of computer models and selects the best one for a particular
application - ANS TRUE
Many service firms use point-of-sale computers to collect detailed needs for accurate short-
term forecasts - ANS TRUE
Forecasts: - ANS are rarely perfect
One use of short-range forecasts is to determine - ANS job assignments
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
The forecasting time horizon and the forecasting techniques used tend to vary over the lifestyle
of a product. - ANS TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning -
ANS TRUE
More 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
The quarterly "make meeting" of Lexus dealers is an example of a sales force composite
forecast. - ANS TRUE
Cycles and random variations are both components of time series. - ANS TRUE
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, 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
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
In trend projection, the trend component is the slope of the regression equation. - ANS TRUE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals -
ANS TRUE
The best way to forecast a business cycle is by finding a leading variable. - ANS TRUE
Linear-regression analysis is a straight-line mathematical model to describe the functional
relationships between independent and dependent variables. - ANS TRUE
Demand cycles for individual products can be driven by product life cycles. - ANS TRUE
Focus forecasting tries a variety of computer models and selects the best one for a particular
application - ANS TRUE
Many service firms use point-of-sale computers to collect detailed needs for accurate short-
term forecasts - ANS TRUE
Forecasts: - ANS are rarely perfect
One use of short-range forecasts is to determine - ANS job assignments
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
