MQM 227 Exam 2 Questions and Answers 100% Correct
Regarding types of time-series components, which of the following statements is incorrect? —
Answer: B. Seasonality is represented by an irregular pattern of demand.
What is the August forecasted demand using a 4-month moving average for the following
actual demand values: January - 300 units, February - 200 units, March - 400 units, April - 500
units, May - 600 units, June - 600 units, July - 700 units. (Round answer to nearest whole
number.) —Answer: A. 4 month = 600
What is the August forecasted demand using a 4-month weighted moving average for the
following past actual demand: January - 300 units, February - 200 units, March - 400 units, April
- 500 units, May - 600 units, June - 600 units, July - 700 units. P1 = 0.4, P2 = 0.3, P3 = 0.2, P4 = 0.1
(Round answer to nearest whole number.) —Answer: 630
What is the August forecasted demand using a 6-month as well as a 6-month moving average
for the following actual demand values: January - 300 units, February - 200 units, March - 400
units, April - 500 units, May - 600 units, June - 600 units, July - 700 units. (Round answer to
nearest whole number.) —Answer: B. 6 month = 500
A. The qualitative type of forecasting utilizes time-series and causal approaches.
B. There is no universal forecasting method for all situations.
C. In organizations, managers are usually most interested in predicting future demand.
D. In CPFR, a long-term, mutually beneficial, collaborative relationship is needed.
E. In a regular moving average calculation, all of the months included in the calculation are
weighted equally. —Answer: A. The qualitative type of forecasting utilizes time-series and
causal approaches.
A. Short-range forecasts are good for procuring materials and work scheduling.
B. Short-range forecasts are usually less than 6 months in the future.
C. Casual forecasting methods are great for predicting turning points in demand.
D. Medium-range forecasts are usually 6 months to two years in the future.
E. Causal forecasting methods are usually more accurate than time-series models for medium-
to long-range forecasts. —Answer: C. Casual forecasting methods are great for predicting
turning points in demand.
A. An essential forecast number is the forecasting error (e.g., standard deviation or range).
B. Weighted moving average is the simplest method of time-series forecasting.
© 2025 All rights reserved
, C. For the weighted moving average, the sum of coefficients always equals to 1.0.
D. Qualitative forecasting methods rely on managerial judgment.
E. In a weighted moving average calculation, demand in more recent months is often given a
higher coefficient so the moving average calculation is more responsive to more recent changes
in demand. —Answer: B. Weighted moving average is the simplest method of time-series
forecasting.
A. Long-range forecasts are good for planning facilities and processes.
B. Quantitative forecasting generally assumes that past data and data patterns are reliable
predictors of the future.
C. Time-series forecasting is used to make general analyses of past demand patterns over time.
D. Time-series forecasting uses these demand patterns to predict demand in the future.
E. In CPFR, all parties must be willing to share sensitive information about demand data, future
sales promotions, potential orders, new products, and lead times. —Answer: C. Time-series
forecasting is used to make general analyses of past demand patterns over time.
A. In a weighted moving average, some of the months in the calculation are considered more
important and are assigned a higher coefficient.
B. Exponential smoothing is a special form of the weighted moving average.
C. Quantitative forecasting methods use an implicit ("best guess") forecasting model.
D. In CPFR, sufficient time and resources must be provided for it to succeed.
E. An essential forecast number is the best estimate of demand (e.g., mean, median, mode). —
Answer: C. Quantitative forecasting methods use an implicit ("best guess") forecasting model.
A. Safety capacity refers to the extra products that are kept in inventory.
B. Marketing uses forecasts for planning products & services, promotions, and pricing.
C. The greater the number of periods used in the moving average method, the more slowly the
forecast reacts to real changes in market demand.
D. The purpose of forecast accuracy is to set safety stocks or safety capacity and thereby ensure
a desired level of protection against stockout.
E. The greater the number of periods used in the moving average method, the more stable the
forecast. —Answer: A. Safety capacity refers to the extra products that are kept in inventory.
A. In the Delphi method, a forecast is developed by a panel of experts answering a series of
questions on successive rounds.
© 2025 All rights reserved
Regarding types of time-series components, which of the following statements is incorrect? —
Answer: B. Seasonality is represented by an irregular pattern of demand.
What is the August forecasted demand using a 4-month moving average for the following
actual demand values: January - 300 units, February - 200 units, March - 400 units, April - 500
units, May - 600 units, June - 600 units, July - 700 units. (Round answer to nearest whole
number.) —Answer: A. 4 month = 600
What is the August forecasted demand using a 4-month weighted moving average for the
following past actual demand: January - 300 units, February - 200 units, March - 400 units, April
- 500 units, May - 600 units, June - 600 units, July - 700 units. P1 = 0.4, P2 = 0.3, P3 = 0.2, P4 = 0.1
(Round answer to nearest whole number.) —Answer: 630
What is the August forecasted demand using a 6-month as well as a 6-month moving average
for the following actual demand values: January - 300 units, February - 200 units, March - 400
units, April - 500 units, May - 600 units, June - 600 units, July - 700 units. (Round answer to
nearest whole number.) —Answer: B. 6 month = 500
A. The qualitative type of forecasting utilizes time-series and causal approaches.
B. There is no universal forecasting method for all situations.
C. In organizations, managers are usually most interested in predicting future demand.
D. In CPFR, a long-term, mutually beneficial, collaborative relationship is needed.
E. In a regular moving average calculation, all of the months included in the calculation are
weighted equally. —Answer: A. The qualitative type of forecasting utilizes time-series and
causal approaches.
A. Short-range forecasts are good for procuring materials and work scheduling.
B. Short-range forecasts are usually less than 6 months in the future.
C. Casual forecasting methods are great for predicting turning points in demand.
D. Medium-range forecasts are usually 6 months to two years in the future.
E. Causal forecasting methods are usually more accurate than time-series models for medium-
to long-range forecasts. —Answer: C. Casual forecasting methods are great for predicting
turning points in demand.
A. An essential forecast number is the forecasting error (e.g., standard deviation or range).
B. Weighted moving average is the simplest method of time-series forecasting.
© 2025 All rights reserved
, C. For the weighted moving average, the sum of coefficients always equals to 1.0.
D. Qualitative forecasting methods rely on managerial judgment.
E. In a weighted moving average calculation, demand in more recent months is often given a
higher coefficient so the moving average calculation is more responsive to more recent changes
in demand. —Answer: B. Weighted moving average is the simplest method of time-series
forecasting.
A. Long-range forecasts are good for planning facilities and processes.
B. Quantitative forecasting generally assumes that past data and data patterns are reliable
predictors of the future.
C. Time-series forecasting is used to make general analyses of past demand patterns over time.
D. Time-series forecasting uses these demand patterns to predict demand in the future.
E. In CPFR, all parties must be willing to share sensitive information about demand data, future
sales promotions, potential orders, new products, and lead times. —Answer: C. Time-series
forecasting is used to make general analyses of past demand patterns over time.
A. In a weighted moving average, some of the months in the calculation are considered more
important and are assigned a higher coefficient.
B. Exponential smoothing is a special form of the weighted moving average.
C. Quantitative forecasting methods use an implicit ("best guess") forecasting model.
D. In CPFR, sufficient time and resources must be provided for it to succeed.
E. An essential forecast number is the best estimate of demand (e.g., mean, median, mode). —
Answer: C. Quantitative forecasting methods use an implicit ("best guess") forecasting model.
A. Safety capacity refers to the extra products that are kept in inventory.
B. Marketing uses forecasts for planning products & services, promotions, and pricing.
C. The greater the number of periods used in the moving average method, the more slowly the
forecast reacts to real changes in market demand.
D. The purpose of forecast accuracy is to set safety stocks or safety capacity and thereby ensure
a desired level of protection against stockout.
E. The greater the number of periods used in the moving average method, the more stable the
forecast. —Answer: A. Safety capacity refers to the extra products that are kept in inventory.
A. In the Delphi method, a forecast is developed by a panel of experts answering a series of
questions on successive rounds.
© 2025 All rights reserved
