OPMA 3306 FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS
Which of the following forecasting methodologies is considered a time series forecasting
technique? - Correct Answers -Simple moving average
A company wants to forecast demand using the weighted moving average. If the
company uses two prior yearly sales values (i.e., year 2012=110 and year 2013=130),
and we want to weight year 2012 at 10% and year 2013 at 90%, which of the following
is the weighted moving average forecast for year 2014? - Correct Answers -Forecast for
2014 = (110x0.1) + (130x0.9) = 11 + 117 = 128
Given a prior forecast demand value of 230, a related actual demand value of 250, and
a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for
the following period? - Correct Answers -Forecast = 230 + 0.1 x (250-230) = 232
A company has actual unit demand for four consecutive years of 100, 105, 135, and
150. The respective forecasts were 120 for all four years. Which of the following is the
resulting MAD value that can be computed from this data? - Correct Answers -MAD =
ABS((100-120)+(105-120)+(135-120)+(150-120))/4 = 80/4 =20
The dimension of design quality that concerns the consistency of performance over time
or the probability of failing is which of the following? - Correct Answers -Reliability
Which of the following is the cost of quality classification for costs such as defects that
pass through the system, such as customer warranty replacements, loss of customer or
goodwill, handling complaints, and product repair? - Correct Answers -External failure
costs
If there are 120 total defects from 10 samples, each sample consisting of 10 individual
items in a production process, which of the following is the fraction defective that can be
used in a "p" chart for quality control purposes? - Correct Answers -1.2
If you were selecting from a variety of forecasting models based on MAD, which of the
following MAD values from the same data would reflect the most accurate model? -
Correct Answers -Since the same data is being used in the question, MAPE would be
least when MAD was smallest.
WITH CORRECT ANSWERS
Which of the following forecasting methodologies is considered a time series forecasting
technique? - Correct Answers -Simple moving average
A company wants to forecast demand using the weighted moving average. If the
company uses two prior yearly sales values (i.e., year 2012=110 and year 2013=130),
and we want to weight year 2012 at 10% and year 2013 at 90%, which of the following
is the weighted moving average forecast for year 2014? - Correct Answers -Forecast for
2014 = (110x0.1) + (130x0.9) = 11 + 117 = 128
Given a prior forecast demand value of 230, a related actual demand value of 250, and
a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for
the following period? - Correct Answers -Forecast = 230 + 0.1 x (250-230) = 232
A company has actual unit demand for four consecutive years of 100, 105, 135, and
150. The respective forecasts were 120 for all four years. Which of the following is the
resulting MAD value that can be computed from this data? - Correct Answers -MAD =
ABS((100-120)+(105-120)+(135-120)+(150-120))/4 = 80/4 =20
The dimension of design quality that concerns the consistency of performance over time
or the probability of failing is which of the following? - Correct Answers -Reliability
Which of the following is the cost of quality classification for costs such as defects that
pass through the system, such as customer warranty replacements, loss of customer or
goodwill, handling complaints, and product repair? - Correct Answers -External failure
costs
If there are 120 total defects from 10 samples, each sample consisting of 10 individual
items in a production process, which of the following is the fraction defective that can be
used in a "p" chart for quality control purposes? - Correct Answers -1.2
If you were selecting from a variety of forecasting models based on MAD, which of the
following MAD values from the same data would reflect the most accurate model? -
Correct Answers -Since the same data is being used in the question, MAPE would be
least when MAD was smallest.
