OTM FINAL EXAM WITH CORRECT ANSWERS 100% VERIFIED
Which sources of data would you use in a time-series-based forecast of the amount of
soda to be sold in the cafeteria next week? - ANSWER Old Demand Data
The manager of the local grocery store notices that the demand for beer always
increases on Fridays, as people stock up in preparation for partying over the weekend.
This is a form of what type of component of demand? - ANSWER seasonality
When using the simple exponential smoothing forecasting method, for which of the
following reasons would one prefer to use a = 0.1 instead of a = 0.5? - ANSWER If the
demand of the product is highly fluctuating with no discernable reason
A company estimates from its past demand data that the seasonality index for the
summer season is 1.5. What does this mean? - ANSWER Demand is higher than average
in the summer.
A store has the following demand figures for the last four years:
Year. Demand
1. 100
2. 150
3. 98
4. 112
What is the exponential smoothing forecast for year 5? Assume alpha = 0.3 and the
forecast for year 4 is 100. Round your answer to one decimal. - ANSWER 103.6
A police station had to deploy a police officer for an emergency multiple times in the last
four evenings. The table below presents the number of emergencies each evening
Day Number of emergencies
, Monday 6
Tuesday 6
Wednesday 8
Thursday 10
What would be their forecast for the emergencies on Friday using a two-day moving
average approach? - ANSWER 9
Elon Musk, the CEO of SpaceX, is trying to forecast the demand for tickets to Mars.
Which forecasting method should he use? - ANSWER Market research
Culver's has been using two different forecasting methods to forecast its sales of
chicken fingers: Method 1 and Method 2. Below are the MAEs and average errors of the
two methods.
Method 1. Method 2
MAE 30 10
Average Error -20 -20
What can you say about the two forecasting methods in terms of the magnitude of
forecasting error? - ANSWER The magnitude of error is larger in Method 1 than in
Method 2.
because the MAE is larger
What do you look at when seeing if methods of forecasting are under or over estimating
demand - ANSWER the AVERAGE error
if negative-underestimate
if positive- overestimate
What is a forecast error? - ANSWER The difference between the forecast and the actual
Which sources of data would you use in a time-series-based forecast of the amount of
soda to be sold in the cafeteria next week? - ANSWER Old Demand Data
The manager of the local grocery store notices that the demand for beer always
increases on Fridays, as people stock up in preparation for partying over the weekend.
This is a form of what type of component of demand? - ANSWER seasonality
When using the simple exponential smoothing forecasting method, for which of the
following reasons would one prefer to use a = 0.1 instead of a = 0.5? - ANSWER If the
demand of the product is highly fluctuating with no discernable reason
A company estimates from its past demand data that the seasonality index for the
summer season is 1.5. What does this mean? - ANSWER Demand is higher than average
in the summer.
A store has the following demand figures for the last four years:
Year. Demand
1. 100
2. 150
3. 98
4. 112
What is the exponential smoothing forecast for year 5? Assume alpha = 0.3 and the
forecast for year 4 is 100. Round your answer to one decimal. - ANSWER 103.6
A police station had to deploy a police officer for an emergency multiple times in the last
four evenings. The table below presents the number of emergencies each evening
Day Number of emergencies
, Monday 6
Tuesday 6
Wednesday 8
Thursday 10
What would be their forecast for the emergencies on Friday using a two-day moving
average approach? - ANSWER 9
Elon Musk, the CEO of SpaceX, is trying to forecast the demand for tickets to Mars.
Which forecasting method should he use? - ANSWER Market research
Culver's has been using two different forecasting methods to forecast its sales of
chicken fingers: Method 1 and Method 2. Below are the MAEs and average errors of the
two methods.
Method 1. Method 2
MAE 30 10
Average Error -20 -20
What can you say about the two forecasting methods in terms of the magnitude of
forecasting error? - ANSWER The magnitude of error is larger in Method 1 than in
Method 2.
because the MAE is larger
What do you look at when seeing if methods of forecasting are under or over estimating
demand - ANSWER the AVERAGE error
if negative-underestimate
if positive- overestimate
What is a forecast error? - ANSWER The difference between the forecast and the actual
