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ISDS 3115 Questions with Detailed Verified Answers
A naive forecast for September sales of a product would be equal to the forecast for August. Ans: ✓
✓ ✓ FALSE
The forecasting time horizon and the forecasting techniques used to vary over the life cycle of a
product. Ans: ✓ ✓ ✓ TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. Ans: ✓ ✓
✓ TRUE
Forecasts of individual products tend to be more accurate than forecasts of product families. Ans:
✓ ✓ ✓ FALSE
Most 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 variation are both components of time series. Ans: ✓ ✓ ✓ TRUE
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
The larger the number of periods in the simple moving average forecasting method, the greater the
method's responsiveness to changes in demand. Ans: ✓ ✓ ✓ FALSE
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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
Mean squared error and Coefficient of Correlation are two measures of the overall error of a
forecasting model. Ans: ✓ ✓ ✓ FALSE
In trend projection, the trend component is the slope of the regression equation. Ans: ✓ ✓ ✓
TRUE
In trend projection, a negative regression slope is mathematically impossible. Ans: ✓ ✓ ✓ FALSE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals. Ans: ✓ ✓ ✓
TRUE
If a quarterly seasonal index has been calculated at 1.55 for the October-December quarter, then
raw data for that quarter must be multiplied by 1.55 so that the quarter can be fairly compare to
other quarters. Ans: ✓ ✓ ✓ FALSE
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
The larger the standard error of the estimate, the more accurate the forecasting model. Ans: ✓ ✓
✓ FALSE
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every
unit of time that passes. Ans: ✓ ✓ ✓ TRUE
In a regression equation where Y is demand and X is advertising, a coefficient of determination (r
squared) of .70 means that 70% of the variance in advertising is explained by demand. Ans: ✓ ✓ ✓
FALSE
Demand cycles for individual products can be driven by product life cycles. Ans: ✓ ✓ ✓ TRUE
If a forecast is consistently greater than (or less than) actual values, the forecast is said to be biased.
Ans: ✓ ✓ ✓ TRUE
Focus forecasting tries a variety of computer models and selects the best one for a particular
application. Ans: ✓ ✓ ✓ TRUE
© Get it right 2025 Getaway - Stuvia US All rights reserved
ISDS 3115 Questions with Detailed Verified Answers
A naive forecast for September sales of a product would be equal to the forecast for August. Ans: ✓
✓ ✓ FALSE
The forecasting time horizon and the forecasting techniques used to vary over the life cycle of a
product. Ans: ✓ ✓ ✓ TRUE
Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. Ans: ✓ ✓
✓ TRUE
Forecasts of individual products tend to be more accurate than forecasts of product families. Ans:
✓ ✓ ✓ FALSE
Most 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 variation are both components of time series. Ans: ✓ ✓ ✓ TRUE
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
The larger the number of periods in the simple moving average forecasting method, the greater the
method's responsiveness to changes in demand. Ans: ✓ ✓ ✓ FALSE
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
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
Mean squared error and Coefficient of Correlation are two measures of the overall error of a
forecasting model. Ans: ✓ ✓ ✓ FALSE
In trend projection, the trend component is the slope of the regression equation. Ans: ✓ ✓ ✓
TRUE
In trend projection, a negative regression slope is mathematically impossible. Ans: ✓ ✓ ✓ FALSE
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals. Ans: ✓ ✓ ✓
TRUE
If a quarterly seasonal index has been calculated at 1.55 for the October-December quarter, then
raw data for that quarter must be multiplied by 1.55 so that the quarter can be fairly compare to
other quarters. Ans: ✓ ✓ ✓ FALSE
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
The larger the standard error of the estimate, the more accurate the forecasting model. Ans: ✓ ✓
✓ FALSE
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every
unit of time that passes. Ans: ✓ ✓ ✓ TRUE
In a regression equation where Y is demand and X is advertising, a coefficient of determination (r
squared) of .70 means that 70% of the variance in advertising is explained by demand. Ans: ✓ ✓ ✓
FALSE
Demand cycles for individual products can be driven by product life cycles. Ans: ✓ ✓ ✓ TRUE
If a forecast is consistently greater than (or less than) actual values, the forecast is said to be biased.
Ans: ✓ ✓ ✓ TRUE
Focus forecasting tries a variety of computer models and selects the best one for a particular
application. Ans: ✓ ✓ ✓ TRUE
© Get it right 2025 Getaway - Stuvia US All rights reserved
