MGT393 EXAM 1 QUESTIONS AND ANSWERS
Importance of forecasting - Answer -The forecast is the only estimate of demand until
actual demand is known
Steps in forecasting (7) - Answer -1. Determine use of forecast
2. Select items to be forecasted
3. Determine the time horizon of the forecast
4. Select the forecasting model
5. Gather data needed to make the forecast
6. Make the forecast
7. Validate and implement results
______ forecasts: forecasts that employ mathematical modeling to forecast demand -
Answer -Quantitative
______ forecasts: forecasts that incorporate such factors as the decision maker's
intuition, emotions, personal experiences, and value system - Answer -Qualititative
Example of qualitative forecasting - Answer -Jury of executive opinion: uses the
opinions of a small group of high-level managers to form a group estimate of demand
Example of quantitative forecasting - Answer -Time series: uses series of past data
points to make a forecast
A ______ forecast uses a number of historical actual data values to generate a forecast
- Answer -moving average
A ______ forecast uses a number of historical actual data values with more emphasis
on recent years to generate a forecast - Answer -weighted moving average
______ is another weighted moving average forecasting method in which data points
are weighted by an exponential function - Answer -Exponential smoothing
______ refers to a general statistical method for analyzing the relationship between
ONE dependent variable and one or more independent variables - Answer -regression
An associative forecasting method with more than one independent variable - Answer -
Multiple regression
Patterns in the data that occur every several years (very long time-frame) - Answer -
Cycles
Upward and downward swings in a short or intermediate time frame
Importance of forecasting - Answer -The forecast is the only estimate of demand until
actual demand is known
Steps in forecasting (7) - Answer -1. Determine use of forecast
2. Select items to be forecasted
3. Determine the time horizon of the forecast
4. Select the forecasting model
5. Gather data needed to make the forecast
6. Make the forecast
7. Validate and implement results
______ forecasts: forecasts that employ mathematical modeling to forecast demand -
Answer -Quantitative
______ forecasts: forecasts that incorporate such factors as the decision maker's
intuition, emotions, personal experiences, and value system - Answer -Qualititative
Example of qualitative forecasting - Answer -Jury of executive opinion: uses the
opinions of a small group of high-level managers to form a group estimate of demand
Example of quantitative forecasting - Answer -Time series: uses series of past data
points to make a forecast
A ______ forecast uses a number of historical actual data values to generate a forecast
- Answer -moving average
A ______ forecast uses a number of historical actual data values with more emphasis
on recent years to generate a forecast - Answer -weighted moving average
______ is another weighted moving average forecasting method in which data points
are weighted by an exponential function - Answer -Exponential smoothing
______ refers to a general statistical method for analyzing the relationship between
ONE dependent variable and one or more independent variables - Answer -regression
An associative forecasting method with more than one independent variable - Answer -
Multiple regression
Patterns in the data that occur every several years (very long time-frame) - Answer -
Cycles
Upward and downward swings in a short or intermediate time frame
