OPMA 3306 EXAM QUESTIONS AND
ANSWERS
The main disadvantage of the moving average is that - Correct 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 -
Correct 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 - Correct Answers -Tests for accuracy are
difficult
Which smoothing constant controls the speed of reaction to differences between
forecasts and actual demand? - Correct Answers -Alpha
Which time series forecasting model uses weights that decrease at a rate of (1- a) for
each past period? - Correct Answers -Exponential
smoothing constants must be given a value between - Correct Answers -0 and 1
One way to overcome the major restriction of linear regression forecasting is to -
Correct 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 - Correct 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? - Correct 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 - Correct Answers -Additive
Seasonal Variation
ANSWERS
The main disadvantage of the moving average is that - Correct 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 -
Correct 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 - Correct Answers -Tests for accuracy are
difficult
Which smoothing constant controls the speed of reaction to differences between
forecasts and actual demand? - Correct Answers -Alpha
Which time series forecasting model uses weights that decrease at a rate of (1- a) for
each past period? - Correct Answers -Exponential
smoothing constants must be given a value between - Correct Answers -0 and 1
One way to overcome the major restriction of linear regression forecasting is to -
Correct 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 - Correct 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? - Correct 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 - Correct Answers -Additive
Seasonal Variation
