OPSY 5315: Exam 2 Study Set
Questions Fully Solved 2026 Updated.
Forecasting time horizons include:
a. long range
b. medium range
c. short range
d. all of the above - Answer all of the above
Qualitative methods of forecasting include:
a. sales force composite
b. jury of executive opinion
c. consumer market survey
d. exponential smoothing
e. all except (d) - Answer all except (d)
The difference between a moving-average model and an exponential smoothing model is
that_____________. - Answer exponential smoothing is a weighted moving-average model in
which all prior values are weighted with a set of exponentially declining weights
Three popular measures of forecast accuracy are:
a. total error, average error, and mean error
b. average error, median error, and maximum error
c. median error, minimum error, and maximum absolute error
d. mean absolute deviation, mean squared error, and mean absolute percent error - Answer
mean absolute deviation, mean squared error, and mean absolute percent error
Average demand for iPods in the Rome, Italy, Apple store is 800 units per month. The May
monthly index is 1.25. What is the seasonally adjusted sales forecast for May?
a. 640 units
b. 798.75 units
c. 800 units
,d. 1,000 units
e. cannot be calculated with the information given - Answer 1,000 units
The main difference between simple and multiple regression is __________. - Answer simple
regression has only one independent variable
The tracking signal is the:
a. Standard error of the estimate
b. cumulative error
c. mean absolute deviation (MAD)
d. ratio of the cumulative error to MAD
e. mean absolute percent error (MAPE) - Answer ratio of the cumulative error to MAD
Time-series patterns that repeat themselves after a period of days or weeks are called
__________
a. cycles
b. seasonality
c. trends - Answer seasonality
Which of the following smoothing constants would make an exponential smoothing forecast
equivalent to a naïve forecast?
a. .5
b. 1.0
c. 0 - Answer 1.0
Which of the following statements about time-series forecasting is true?
a. It is based on the assumption that the analysis of past demand helps predict future demand.
b. It is based on the assumption that future demand will be the same as past demand.
c. Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than
associative forecasting. - Answer It is based on the assumption that the analysis of past
demand helps predict future demand.
,Which time-series model assumes that demand in the next period will be equal to the most
recent period's demand?
a. Moving average approach
b. Naïve approach
c. Exponential smoothing approach - Answer Naïve approach
The degree or strength of a relationship between two variables is shown by the__________
a. mean absolute deviation
b. alpha
c. correlation coefficient - Answer correlation coefficient
The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were
60, 80, 95, and 75 units. These forecasts illustrate:
a. Trend projections
b. Qualitative methods
c. Bias - Answer Bias
The primary purpose of the mean absolute deviation (MAD) in forecasting is to:
a. Seasonally adjust the forecast
b Measure forecast accuracy
c. Eliminate forecast errors - Answer Measure forecast accuracy
If demand is 106 during January, 120 in February, 134 in March, and 142 in April, what is the 3-
month simple moving average for May?
a. 132
b. 126
c. 138 - Answer 132
120+134+142 = 396
396/3 = 132
Moving Average = 132
, Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?
a. 8
b. 16
c. 4 - Answer 4
1+4+8+3 = 16
16/4 = 4
Demand for a certain product is forecast to be 800 units per month, averaged over all 12
months of the year. The product follows a seasonal pattern, for which the January monthly
index is 1.25. What is the seasonally-adjusted sales forecast for January?
a. 640 units
b. 1000 units
c. 798.75 units - Answer 1000 units
A seasonal index for a monthly series is about to be calculated on the basis of three years'
accumulation of data. The three previous July values were 110, 150, and 130. The average over
all months is 190. The approximate seasonal index for July is:
a. 1.462
b. 0.684
c. 0.487 - Answer 0.684
110 + 150 + 130 = 390/3 = 130
130/190 = 0.684
Which of the following uses three types of participants: decision makers, staff personnel, and
respondents?
a. Executive opinions
b. The Delphi method
c. Sales force composites - Answer The Delphi method
Forecasts used for new product planning, capital expenditures, facility location or expansion,
and R&D typically utilize a__________
a. medium-range time horizon
Questions Fully Solved 2026 Updated.
Forecasting time horizons include:
a. long range
b. medium range
c. short range
d. all of the above - Answer all of the above
Qualitative methods of forecasting include:
a. sales force composite
b. jury of executive opinion
c. consumer market survey
d. exponential smoothing
e. all except (d) - Answer all except (d)
The difference between a moving-average model and an exponential smoothing model is
that_____________. - Answer exponential smoothing is a weighted moving-average model in
which all prior values are weighted with a set of exponentially declining weights
Three popular measures of forecast accuracy are:
a. total error, average error, and mean error
b. average error, median error, and maximum error
c. median error, minimum error, and maximum absolute error
d. mean absolute deviation, mean squared error, and mean absolute percent error - Answer
mean absolute deviation, mean squared error, and mean absolute percent error
Average demand for iPods in the Rome, Italy, Apple store is 800 units per month. The May
monthly index is 1.25. What is the seasonally adjusted sales forecast for May?
a. 640 units
b. 798.75 units
c. 800 units
,d. 1,000 units
e. cannot be calculated with the information given - Answer 1,000 units
The main difference between simple and multiple regression is __________. - Answer simple
regression has only one independent variable
The tracking signal is the:
a. Standard error of the estimate
b. cumulative error
c. mean absolute deviation (MAD)
d. ratio of the cumulative error to MAD
e. mean absolute percent error (MAPE) - Answer ratio of the cumulative error to MAD
Time-series patterns that repeat themselves after a period of days or weeks are called
__________
a. cycles
b. seasonality
c. trends - Answer seasonality
Which of the following smoothing constants would make an exponential smoothing forecast
equivalent to a naïve forecast?
a. .5
b. 1.0
c. 0 - Answer 1.0
Which of the following statements about time-series forecasting is true?
a. It is based on the assumption that the analysis of past demand helps predict future demand.
b. It is based on the assumption that future demand will be the same as past demand.
c. Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than
associative forecasting. - Answer It is based on the assumption that the analysis of past
demand helps predict future demand.
,Which time-series model assumes that demand in the next period will be equal to the most
recent period's demand?
a. Moving average approach
b. Naïve approach
c. Exponential smoothing approach - Answer Naïve approach
The degree or strength of a relationship between two variables is shown by the__________
a. mean absolute deviation
b. alpha
c. correlation coefficient - Answer correlation coefficient
The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were
60, 80, 95, and 75 units. These forecasts illustrate:
a. Trend projections
b. Qualitative methods
c. Bias - Answer Bias
The primary purpose of the mean absolute deviation (MAD) in forecasting is to:
a. Seasonally adjust the forecast
b Measure forecast accuracy
c. Eliminate forecast errors - Answer Measure forecast accuracy
If demand is 106 during January, 120 in February, 134 in March, and 142 in April, what is the 3-
month simple moving average for May?
a. 132
b. 126
c. 138 - Answer 132
120+134+142 = 396
396/3 = 132
Moving Average = 132
, Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?
a. 8
b. 16
c. 4 - Answer 4
1+4+8+3 = 16
16/4 = 4
Demand for a certain product is forecast to be 800 units per month, averaged over all 12
months of the year. The product follows a seasonal pattern, for which the January monthly
index is 1.25. What is the seasonally-adjusted sales forecast for January?
a. 640 units
b. 1000 units
c. 798.75 units - Answer 1000 units
A seasonal index for a monthly series is about to be calculated on the basis of three years'
accumulation of data. The three previous July values were 110, 150, and 130. The average over
all months is 190. The approximate seasonal index for July is:
a. 1.462
b. 0.684
c. 0.487 - Answer 0.684
110 + 150 + 130 = 390/3 = 130
130/190 = 0.684
Which of the following uses three types of participants: decision makers, staff personnel, and
respondents?
a. Executive opinions
b. The Delphi method
c. Sales force composites - Answer The Delphi method
Forecasts used for new product planning, capital expenditures, facility location or expansion,
and R&D typically utilize a__________
a. medium-range time horizon
