ISDS 3115 FINAL EXAM ALL 300 QUESTIONS AND CORRECT ANSWERS LATEST UPDATE THIR YEAR

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ISDS 3115 FINAL EXAM ALL 300 QUESTIONS
AND CORRECT ANSWERS LATEST UPDATE THIR
YEAR
QUESTION: A time-series model uses a series of past data points to make the forecast -

ANSWER-TRUE




QUESTION: The quarterly "make meeting" of Lexus dealers is an example of a sales force

composite forecast. - ANSWER-TRUE




QUESTION: Cycles and random variation are both components of time series. - ANSWER-TRUE




QUESTION: A naive forecast for September sales of a product would be equal to the sales in

August. - ANSWER-TRUE




QUESTION: One advantage of exponential smoothing is the limited amount of record keeping

involved. - ANSWER-TRUE




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QUESTION: The larger the number of periods in the simple moving average forecasting method,

the greater the method's responsiveness to changes in demand. - ANSWER-FALSE




QUESTION: 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. - ANSWER-

TRUE




QUESTION: Mean squared error and Coefficient of Correlation are two measures of the overall

error of a forecasting model. - ANSWER-FALSE




QUESTION: In trend projection, the trend component is the slope of the regression equation. -

ANSWER-TRUE




QUESTION: In trend projection, a negative regression slope is mathematically impossible. -

ANSWER-FALSE




QUESTION: Seasonal indexes adjust raw data for patterns that repeat at regular time intervals. -

ANSWER-TRUE



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QUESTION: 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. - ANSWER-FALSE




QUESTION: The best way to forecast a business cycle is by finding a leading variable. - ANSWER-

TRUE




Q; A naive forecast for September sales of a product would be equal to the forecast for August.

- ANSWER-FALSE




QUESTION: The forecasting time horizon and the forecasting techniques used to vary over the

life cycle of a product. - ANSWER-TRUE




QUESTION: Demand (sales) forecasts serve as inputs to financial, marketing, and personnel

planning. - ANSWER-TRUE




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QUESTION: Forecasts of individual products tend to be more accurate than forecasts of product

families. - ANSWER-FALSE




QUESTION: Most forecasting techniques assume that there is some underlying stability in the

system. - ANSWER-TRUE




QUESTION: The sales force composite forecasting method relies on salespersons' estimates of

expected sales. - ANSWER-TRUE




QUESTION: Linear regression analysis is a straight-line mathematical model to describe the

functional relationships between independent and dependent variables. - ANSWER-TRUE




QUESTION: The larger the standard error of the estimate, the more accurate the forecasting

model. - ANSWER-FALSE




QUESTION: 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. - ANSWER-TRUE


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