SCMA 331 PREPARATION TEST 2026
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● The forecasting time horizon and the forecasting techniques used tend
to vary over the life cycle of a product. Answer: True
● Demand (sales) forecasts serve as inputs to financial, marketing, and
personnel planning. Answer: True
● Forecasts of individual products tend to be more accurate than
forecasts of product families. Answer: False
● Most forecasting techniques assume that there is some underlying
stability in the system. Answer: True
● The sales force composite forecasting method relies on salespersons'
estimates of expected sales. Answer: True
● A time-series model uses a series of past data points to make the
forecast. Answer: True
,● The quarterly "make meeting" of Lexus dealers is an example of a
sales force composite forecast. Answer: True
● Cycles and random variations are both components of time series.
Answer: True
● A naive forecast for September sales of a product would be equal to
the sales in August. Answer: True
● One advantage of exponential smoothing is the limited amount of
record keeping involved. Answer: True
● 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
● Mean Squared Error and Coefficient of Correlation are two measures
of the overall error of a forecasting model. Answer: False
● In trend projection, the trend component is the slope of the regression
equation. Answer: True
● In trend projection, a negative regression slope is mathematically
impossible. Answer: False
,● Seasonal indices adjust raw data for patterns that repeat at regular time
intervals. Answer: True
● Patterns in the data that occur every several years are called circuits.
Answer: False
● Linear-regression analysis is a straight-line mathematical model to
describe the functional relationships between independent and dependent
variables. Answer: True
● The larger the standard error of the estimate, the more accurate the
forecasting model. Answer: False
● 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
● In a regression equation where Y is demand and X is advertising, a
coefficient of determination (R2) of .70 means that 70% of the variance
in advertising is explained by demand. Answer: False
● Demand cycles for individual products can be driven by product life
cycles. Answer: True
, ● If a forecast is consistently greater than (or less than) actual values, the
forecast is said to be biased. Answer: True
● Focus forecasting tries a variety of computer models and selects the
best one for a particular application. Answer: True
● Many service firms use point-of-sale computers to collect detailed
records needed for accurate short-term forecasts. Answer: True
● Technological forecasts address the business cycle by predicting
inflation rates, money supplies, housing starts, and other planning
indicators. Answer: False
● Regression lines graphically depict "cause-and-effect" relationships.
Answer: False
● What two numbers are contained in the daily report to the CEO of
Walt Disney Parks & Resorts regarding the six Orlando parks?
A) yesterday's forecasted attendance and yesterday's actual attendance
B) yesterday's actual attendance and today's forecasted attendance
C) yesterday's forecasted attendance and today's forecasted attendance
D) yesterday's actual attendance and last year's actual attendance
E) yesterday's forecasted attendance and the year-to-date average daily
forecast error Answer: A
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● The forecasting time horizon and the forecasting techniques used tend
to vary over the life cycle of a product. Answer: True
● Demand (sales) forecasts serve as inputs to financial, marketing, and
personnel planning. Answer: True
● Forecasts of individual products tend to be more accurate than
forecasts of product families. Answer: False
● Most forecasting techniques assume that there is some underlying
stability in the system. Answer: True
● The sales force composite forecasting method relies on salespersons'
estimates of expected sales. Answer: True
● A time-series model uses a series of past data points to make the
forecast. Answer: True
,● The quarterly "make meeting" of Lexus dealers is an example of a
sales force composite forecast. Answer: True
● Cycles and random variations are both components of time series.
Answer: True
● A naive forecast for September sales of a product would be equal to
the sales in August. Answer: True
● One advantage of exponential smoothing is the limited amount of
record keeping involved. Answer: True
● 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
● Mean Squared Error and Coefficient of Correlation are two measures
of the overall error of a forecasting model. Answer: False
● In trend projection, the trend component is the slope of the regression
equation. Answer: True
● In trend projection, a negative regression slope is mathematically
impossible. Answer: False
,● Seasonal indices adjust raw data for patterns that repeat at regular time
intervals. Answer: True
● Patterns in the data that occur every several years are called circuits.
Answer: False
● Linear-regression analysis is a straight-line mathematical model to
describe the functional relationships between independent and dependent
variables. Answer: True
● The larger the standard error of the estimate, the more accurate the
forecasting model. Answer: False
● 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
● In a regression equation where Y is demand and X is advertising, a
coefficient of determination (R2) of .70 means that 70% of the variance
in advertising is explained by demand. Answer: False
● Demand cycles for individual products can be driven by product life
cycles. Answer: True
, ● If a forecast is consistently greater than (or less than) actual values, the
forecast is said to be biased. Answer: True
● Focus forecasting tries a variety of computer models and selects the
best one for a particular application. Answer: True
● Many service firms use point-of-sale computers to collect detailed
records needed for accurate short-term forecasts. Answer: True
● Technological forecasts address the business cycle by predicting
inflation rates, money supplies, housing starts, and other planning
indicators. Answer: False
● Regression lines graphically depict "cause-and-effect" relationships.
Answer: False
● What two numbers are contained in the daily report to the CEO of
Walt Disney Parks & Resorts regarding the six Orlando parks?
A) yesterday's forecasted attendance and yesterday's actual attendance
B) yesterday's actual attendance and today's forecasted attendance
C) yesterday's forecasted attendance and today's forecasted attendance
D) yesterday's actual attendance and last year's actual attendance
E) yesterday's forecasted attendance and the year-to-date average daily
forecast error Answer: A
