MQM 227 Exam 2 with Correct Answers
Which of the following statements is incorrect?
a. The purpose of forecast accuracy is to determine when the forecasting method is no longer
tracking actual demand and should be reset.
b. Forecasting is only used to predict future events.
c. Through planning, we consciously attempt to alter future events.
d. Whenever demand is not constrained by capacity, inventory, or other management policies;
the forecasting of demand should be the same as the forecasting of sales.
e. The purpose of forecast accuracy is to monitor predictable demand observations or outliers
(which should be carefully evaluated and perhaps excluded from data analysis). —Answer: e.
The purpose of forecast accuracy is to monitor predictable demand observations or outliers
(which should be carefully evaluated and perhaps excluded from data analysis).
Correct: The purpose is to monitor erratic demand observations.
Which of the following statements is incorrect?
a. The critical path is the one that takes the longest time to complete.
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,b. Crash times are applied to all activities on the critical path(s).
c. PERT requires three time estimates for each activity: an optimistic, most likely, and
pessimistic time estimate.
d. Slag (if any) is the difference between ES and LS at each operation.
e. PERT refers to the program evaluation review technique. —Answer: b. Crash times are
applied to all activities on the critical path(s).
Correct: Crash times are only applied to the critical path.
D is wrong if not a typo.
Which of the following statements is incorrect?
a. Forecasts will almost always be incorrect because the future is relatively uncertain.
b. When a major employer leaves an area, past sales data may not be a reliable predictor of the
future.
c. Qualitative forecasting methods are useful when past data is not reliable predictors of the
future.
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, d. In forecasting, a lack of data may occur when the product is a new innovation or invention.
e. Quantitative forecasting methods are useful when there is a lack of data. —Answer: e.
Quantitative forecasting methods are useful when there is a lack of data.
Correct: They are useful with ample data.
Which of the following tasks do not occur during the scheduling phase of a project?
a. Finish all work
b. Develop a detailed work-breakdown structure
c. Estimate the time required for each task
d. Develop a detailed budget for each task —Answer: a. Finish all work
Which of the following options is not listed as a method of adding capacity to bottlenecks?
a. adding machine time (e.g., coverage during breaks)
b. reducing setup time
c. subcontracting
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Which of the following statements is incorrect?
a. The purpose of forecast accuracy is to determine when the forecasting method is no longer
tracking actual demand and should be reset.
b. Forecasting is only used to predict future events.
c. Through planning, we consciously attempt to alter future events.
d. Whenever demand is not constrained by capacity, inventory, or other management policies;
the forecasting of demand should be the same as the forecasting of sales.
e. The purpose of forecast accuracy is to monitor predictable demand observations or outliers
(which should be carefully evaluated and perhaps excluded from data analysis). —Answer: e.
The purpose of forecast accuracy is to monitor predictable demand observations or outliers
(which should be carefully evaluated and perhaps excluded from data analysis).
Correct: The purpose is to monitor erratic demand observations.
Which of the following statements is incorrect?
a. The critical path is the one that takes the longest time to complete.
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,b. Crash times are applied to all activities on the critical path(s).
c. PERT requires three time estimates for each activity: an optimistic, most likely, and
pessimistic time estimate.
d. Slag (if any) is the difference between ES and LS at each operation.
e. PERT refers to the program evaluation review technique. —Answer: b. Crash times are
applied to all activities on the critical path(s).
Correct: Crash times are only applied to the critical path.
D is wrong if not a typo.
Which of the following statements is incorrect?
a. Forecasts will almost always be incorrect because the future is relatively uncertain.
b. When a major employer leaves an area, past sales data may not be a reliable predictor of the
future.
c. Qualitative forecasting methods are useful when past data is not reliable predictors of the
future.
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, d. In forecasting, a lack of data may occur when the product is a new innovation or invention.
e. Quantitative forecasting methods are useful when there is a lack of data. —Answer: e.
Quantitative forecasting methods are useful when there is a lack of data.
Correct: They are useful with ample data.
Which of the following tasks do not occur during the scheduling phase of a project?
a. Finish all work
b. Develop a detailed work-breakdown structure
c. Estimate the time required for each task
d. Develop a detailed budget for each task —Answer: a. Finish all work
Which of the following options is not listed as a method of adding capacity to bottlenecks?
a. adding machine time (e.g., coverage during breaks)
b. reducing setup time
c. subcontracting
© 2025 All rights reserved
