TOM 301 Test Questions with Correct Answers Latest Update 2025 Graded A+
Quantitative Forecasts. Examples & Limitations. - Answers 1. Time-Series
2. Associative Forecasts
When there are circumstances economically where there is sharp change due to something that does
not have enough quantitative analysis or data to accurately predict, these forecasts are less useful.
What are some of the consequences of poor forecasts? - Answers Poor forecasting leads to poor
business decisions and can sometimes lead to catastrophic results. Optimistic forecasts often mean that
the firm projects a demand that is much higher than the actual demand and will lead to inventories
pilling up and retailers having to discount the products to clear the shelves.
The reverse is true if the forecast is too pessimistic. This means that the project demand is much lower
than actual demand. In this case, the risk is of stock-outs at the retailers end and there will be many
dissatisfied customers.
List specific weaknesses...
A. Consumer Surveys
B. Salesforce composite
C. Committee of managers or executives - Answers A. Survey's sometimes have very small sample sizes.
Unless the survey is designed by an expert, it can likely have flaws and will not ask the questions in the
pointed ways required. If the sample is not well put together, it will not reflect accurate customer
perception of a product or service.
B. While sales people, and salesforce the program can provide key information that companies would
likely otherwise not disclose, many sales people come with their own share of bias and personal
baggage. This could easily negatively influence the outcome of the composite. Therefore, a senior-
manager will likely need to vet and fact-check any composites/forecasts the salesforce releases.
C. There is always a chance you have one person bullying the rest to fall into line with a specific type of
thinking. This will cause the data to be skewed and inaccurate.
A. Demand for Mother's Day greeting cards
, B. Popularity of a new TV series
C. Demand for vacations on the moon
D. The impact of a price increase
E. Demand for toothpaste - Answers A. Naive
B. Delphi
C. Delphi
D. Associative
E. Naive or Averaging
What are the dimensions of service quality? - Answers 1. Convenience
2. Reliability
3. Responsiveness
4. Time
5. Assurance
6. Courtesy
7. Tangibles
8. Consistency
What are the determinants of quality? - Answers 1. Design
2. Conformity to the design
3. Ease of use
4. Service after delivery
Define the terms quality of design and quality of conformance. - Answers Quality of Design: The quality
of the design inputs that have been put into the design of a product or service. It also refers to the
degree to which various inputs from users, marketing, production and other relevant functional areas
have been incorporated into the ultimate design.
Quality of Conformance: The extent to which the product or service conforms to the intents of the
designer.
Quantitative Forecasts. Examples & Limitations. - Answers 1. Time-Series
2. Associative Forecasts
When there are circumstances economically where there is sharp change due to something that does
not have enough quantitative analysis or data to accurately predict, these forecasts are less useful.
What are some of the consequences of poor forecasts? - Answers Poor forecasting leads to poor
business decisions and can sometimes lead to catastrophic results. Optimistic forecasts often mean that
the firm projects a demand that is much higher than the actual demand and will lead to inventories
pilling up and retailers having to discount the products to clear the shelves.
The reverse is true if the forecast is too pessimistic. This means that the project demand is much lower
than actual demand. In this case, the risk is of stock-outs at the retailers end and there will be many
dissatisfied customers.
List specific weaknesses...
A. Consumer Surveys
B. Salesforce composite
C. Committee of managers or executives - Answers A. Survey's sometimes have very small sample sizes.
Unless the survey is designed by an expert, it can likely have flaws and will not ask the questions in the
pointed ways required. If the sample is not well put together, it will not reflect accurate customer
perception of a product or service.
B. While sales people, and salesforce the program can provide key information that companies would
likely otherwise not disclose, many sales people come with their own share of bias and personal
baggage. This could easily negatively influence the outcome of the composite. Therefore, a senior-
manager will likely need to vet and fact-check any composites/forecasts the salesforce releases.
C. There is always a chance you have one person bullying the rest to fall into line with a specific type of
thinking. This will cause the data to be skewed and inaccurate.
A. Demand for Mother's Day greeting cards
, B. Popularity of a new TV series
C. Demand for vacations on the moon
D. The impact of a price increase
E. Demand for toothpaste - Answers A. Naive
B. Delphi
C. Delphi
D. Associative
E. Naive or Averaging
What are the dimensions of service quality? - Answers 1. Convenience
2. Reliability
3. Responsiveness
4. Time
5. Assurance
6. Courtesy
7. Tangibles
8. Consistency
What are the determinants of quality? - Answers 1. Design
2. Conformity to the design
3. Ease of use
4. Service after delivery
Define the terms quality of design and quality of conformance. - Answers Quality of Design: The quality
of the design inputs that have been put into the design of a product or service. It also refers to the
degree to which various inputs from users, marketing, production and other relevant functional areas
have been incorporated into the ultimate design.
Quality of Conformance: The extent to which the product or service conforms to the intents of the
designer.
