Chapter 4

=last period's forecast+œ(last period's actual demand - last period's forecast)

exponential smoothing calculation

false (alpha chosen between 0 and 1)

In exponential smoothing, you should choose low values of alpha (a) when underlying average is likely to change.

true

Qualitative forecasting methods are used when the situation is vague and little data exist.

false

The larger the standard error of the estimate, the more accurate the forecasting model.

true

The sales force composite forecasting method relies on salespersons' estimates of expected sales.

It would smooth out the forecast but make it less perceptive to change

What happens when increasing the number of periods in Moving Average

used for planning new products, capital expenditures, facility location or expansion, and research and development

When do you long range forecast?

true

A naïve forecast for September sales of a product would be equal to the forecast for August.

true

A time-series model uses a series of past data points to make the forecast.

true

Forecasts may be influenced by a product's position in its life cycle.

false (grouping minivans into a group with other "family cars" would get a more accurate representation)

Forecasts of individual products tend to be more accurate than forecasts of product families.

false, it's definitely possible

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

true

Most forecasting techniques assume that there is some underlying stability in the system.