MGSC 395 CORRECT TEST PAPER ANSWERS AND
QUESTIONS SET A+
✔✔Which statement about the forecasting process is best?
A.
Whenever possible, forecast at the lowest level (greatest level of detail).
B.
Bias is the worst kind of forecast error.
C.
The best way to improve forecast accuracy is to add additional terms to the forecast
equation.
D.
Quantitative forecasts are better than qualitative forecasts. - ✔✔A
✔✔Judgment methods may be the only practical way to make a forecast when
A.
quantitative models have been performing particularly well in recent periods.
B.
there is a great deal of historical product data.
C.
there is no historical data due to a new product introduction.
D.
the forecast made in the previous period had a MAPE of less than 10%. - ✔✔C
✔✔The _________ of forecasting is a process of gaining consensus from a group of
experts.
A.
Delphi method
B.
technological method
C.
consulting method
D.
salesforce estimate method - ✔✔A
, ✔✔____________ can also be used for forecasting the quick pace of technological
change.
A.
Executive opinion
B.
Exponential smoothing
C.
"What-if" analysis
D.
Market research - ✔✔A
✔✔Judgment methods are LEAST likely to be indicated in which of the following
situations?
A.
A new product is being introduced.
B.
Short-term forecasts are made for a product with stable demand.
C.
The Delphi method is necessary.
D.
The underlying product technology is in transition. - ✔✔B
✔✔Combination forecasts produced by averaging independent forecasts based on
different methods
A.
has been suggested by research to produce more accurate forecasts than a single
forecasting procedure.
B.
seldom performs better over time than the best single forecasting procedure.
C.
should not be attempted when the individual forecasts bring different kinds of
information into the forecasting process.
D.
is prohibitively expensive. - ✔✔A
✔✔Which of the following statements is false?
A.
In a make-to-stock environment, forecasts tend to be more detailed and can get down to
specific individual products.
B.
If the lead time to buy raw materials is long, the forecasts go farther out into the future.
C.
In a make-to-order environment, the forecasts tend to be for groups of products.
D.
All of the above statements are true. - ✔✔D
QUESTIONS SET A+
✔✔Which statement about the forecasting process is best?
A.
Whenever possible, forecast at the lowest level (greatest level of detail).
B.
Bias is the worst kind of forecast error.
C.
The best way to improve forecast accuracy is to add additional terms to the forecast
equation.
D.
Quantitative forecasts are better than qualitative forecasts. - ✔✔A
✔✔Judgment methods may be the only practical way to make a forecast when
A.
quantitative models have been performing particularly well in recent periods.
B.
there is a great deal of historical product data.
C.
there is no historical data due to a new product introduction.
D.
the forecast made in the previous period had a MAPE of less than 10%. - ✔✔C
✔✔The _________ of forecasting is a process of gaining consensus from a group of
experts.
A.
Delphi method
B.
technological method
C.
consulting method
D.
salesforce estimate method - ✔✔A
, ✔✔____________ can also be used for forecasting the quick pace of technological
change.
A.
Executive opinion
B.
Exponential smoothing
C.
"What-if" analysis
D.
Market research - ✔✔A
✔✔Judgment methods are LEAST likely to be indicated in which of the following
situations?
A.
A new product is being introduced.
B.
Short-term forecasts are made for a product with stable demand.
C.
The Delphi method is necessary.
D.
The underlying product technology is in transition. - ✔✔B
✔✔Combination forecasts produced by averaging independent forecasts based on
different methods
A.
has been suggested by research to produce more accurate forecasts than a single
forecasting procedure.
B.
seldom performs better over time than the best single forecasting procedure.
C.
should not be attempted when the individual forecasts bring different kinds of
information into the forecasting process.
D.
is prohibitively expensive. - ✔✔A
✔✔Which of the following statements is false?
A.
In a make-to-stock environment, forecasts tend to be more detailed and can get down to
specific individual products.
B.
If the lead time to buy raw materials is long, the forecasts go farther out into the future.
C.
In a make-to-order environment, the forecasts tend to be for groups of products.
D.
All of the above statements are true. - ✔✔D
