OPMA 3306 QUESTIONS | 2026 | GUARANTEED PASS
The main disadvantage of the moving average is that - Answers -all individual data
elements must be carried as data
A simple moving average gives ________ weight to each component of the forecast;
whereas a weighted moving average gives __________ weight to each element -
Answers -equal; varying
all of the following are reasons why exponential has become well accepted except:
formulating the model is easy, low computer storage requirements, tests for accuracy
are difficult, models are surprising accurate - Answers -Tests for accuracy are difficult
Which smoothing constant controls the speed of reaction to differences between
forecasts and actual demand? - Answers -Alpha
Which time series forecasting model uses weights that decrease at a rate of (1- a) for
each past period? - Answers -Exponential
smoothing constants must be given a value between - Answers -0 and 1
One way to overcome the major restriction of linear regression forecasting is to -
Answers -use a shorter time period
Which of the following statements is true about linear regression forecasting? linear
regression is used for time series forecasting, linear regression is used for causal
forecasting, linear regression estimates demand using a line of the form Y = a+bt ,
linear regression has no serious drawbacks - Answers -linear regression is used for
time series forecasting, linear regression is used for causal forecasting, linear
regression estimates demand using a line of the form Y = a+bt
What term describes the process of identifying & separating time series data into
components? - Answers -Decomposition
When the change in demand due to seasonally is a constant amount, regardless of
trend or average, the seasonal variation is describes as - Answers -Additive Seasonal
Variation
When the amount of seasonal variation depends upon the trend or average amount, the
seasonality is described as - Answers -Multiplicative Seasonality
True or False: The seasonal factor is also known as the seasonal index - Answers -
True
The main disadvantage of the moving average is that - Answers -all individual data
elements must be carried as data
A simple moving average gives ________ weight to each component of the forecast;
whereas a weighted moving average gives __________ weight to each element -
Answers -equal; varying
all of the following are reasons why exponential has become well accepted except:
formulating the model is easy, low computer storage requirements, tests for accuracy
are difficult, models are surprising accurate - Answers -Tests for accuracy are difficult
Which smoothing constant controls the speed of reaction to differences between
forecasts and actual demand? - Answers -Alpha
Which time series forecasting model uses weights that decrease at a rate of (1- a) for
each past period? - Answers -Exponential
smoothing constants must be given a value between - Answers -0 and 1
One way to overcome the major restriction of linear regression forecasting is to -
Answers -use a shorter time period
Which of the following statements is true about linear regression forecasting? linear
regression is used for time series forecasting, linear regression is used for causal
forecasting, linear regression estimates demand using a line of the form Y = a+bt ,
linear regression has no serious drawbacks - Answers -linear regression is used for
time series forecasting, linear regression is used for causal forecasting, linear
regression estimates demand using a line of the form Y = a+bt
What term describes the process of identifying & separating time series data into
components? - Answers -Decomposition
When the change in demand due to seasonally is a constant amount, regardless of
trend or average, the seasonal variation is describes as - Answers -Additive Seasonal
Variation
When the amount of seasonal variation depends upon the trend or average amount, the
seasonality is described as - Answers -Multiplicative Seasonality
True or False: The seasonal factor is also known as the seasonal index - Answers -
True
