MGT295 exam 1 quiz questions

In linear regression, the Blank______ variable is plotted on the horizontal axis and the Blank______ variable is plotted on the vertical axis. Multiple choice question. new; old old; new dependent: independent independent; dependent

independent; dependent

To calculate MAD and summing up the forecasts errors, the value used for ∣∣18−20∣∣18-20 in the calculation is? Multiple choice question. -2 Either 2 or -2 2 Cannot be computed

2

The most widely used forecasting technique is? Multiple choice question. Simple Moving Average Reason: Exponential smoothing is the most widely used forecasting technique. Linear Regression Reason: Exponential smoothing is the most widely used forecasting technique. Complex Moving Average Reason: Exponential smoothing is the most widely used forecasting technique. Exponential Smoothing

Exponential Smoothing

Which of the following is not a reason why exponential smoothing has been well accepted? Multiple choice question. Formulating the model is relatively difficult. Models are surprisingly accurate. Users can understand how the model works. Little computation is required to use the model.

Formulating the model is relatively difficult.

Which of the following is not an example of a qualitative forecasting technique? Multiple choice question. Gamma Method Market Research Reason: Market research is a qualitative forecasting technique. Historical Analogy Reason: Historical analogy is a qualitative forecasting technique. Panel Consensus Reason: Panel consensus is a qualitative forecasting technique.

Gamma Method

Which of the following is not an example of a qualitative forecasting technique? Multiple choice question. Historical Analogy Panel Consensus Gamma Method Market Research

Gamma Method

In business forecasting, what time frame usually refers to three months to two years? Multiple choice question. Short Quarter Long Medium

Medium

Which of the following is not a component of demand? Multiple choice question. Seasonal Trend Planned Random

Planned

When decomposing a time series into its components, you do all of the following except: Multiple choice question. Project trend component into the future. Find trend component. Deseasonalize the demand. Find seasonal component of past data.

Project trend component into the future.

Match the forecasting technique with its description. Instructions Qualitative Qualitative drop zone empty. Time Series Analysis Time Series Analysis drop zone empty. Causal Forecasting Causal Forecasting drop zone empty. Simulation Simulation drop zone empty. Uses past data to predict future demand. Uses subjective or judgmental approach. Allows the forecaster to run through a range of assumptions. Assumes that demand is related to some underlying factor in the environment.

Qualitative matches Uses subjective or judgmental approach Time Series Analysis matches Choice Uses past data to predict future demand .Causal Forecasting matches Choice Assumes that demand is related to some underlying factor in the environment. Simulation matches Choice Allows the forecaster to run through a range of assumptions.

What type of forecast should be used for strategy, sourcing, and location decisions? Multiple choice question. Operational Independent Strategic Tactical

Strategic

All of the following are reasons why exponential smoothing has become well accepted EXCEPT: Multiple choice question. Formulating the model is easy Low computer storage requirements Models are surprisingly accurate Tests for accuracy are difficult

Tests for accuracy are difficult

Which of the following is true concerning linear regression? Multiple select question. Linear regression cannot be used for time series forecasting. The relationship between variables forms a straight line. The equation of a regression line is Yt = a + bt�� = � + ��. Linear regression is most useful for short-term forecasts.

The relationship between variables forms a straight line. The equation of a regression line is Yt = a + bt�� = � + ��.

True or false: Linear regression assumes that the relationship between the variables forms a straight line. True false question.TrueFalse

True

Place the steps of the decomposition using least squares regression process into chronological order. Position 1 of 5 Deseasonalize the original data. incorrect toggle button unavailable Deseasonalize the original data. deseasonalize the original data develop a regression line for the deseasonalised data project the regression line over the forecast period determine the seasonal factor adjust the regression line using the seasonal factor

determine the seasonal factor deseasonalize the original data develop a regression line for the deseasonalised data project the regression line over the forecast period adjust the regression line using the seasonal factor

A simple moving average gives Blank______ weight to each component of the forecast; whereas a weighted moving average gives Blank______ weight to each element. Multiple choice question. equal; equal varying; varying equal; varying varying; equal

equal; varying

Which of the following are examples of qualitative forecasting? Multiple select question. Panel Consensus Time Series Analysis Linear Regression Analysis Market Research

Panel Consensus Market Research

A forecast based on average past demand is a Multiple choice question. linear regression forecast. static average forecast. quantitative forecast. moving average forecast.

moving average forecast.

Tactical forecasts are Blank______ term, while strategic forecasts are Blank______ term. Multiple choice question. short and medium; long short; medium and long medium; long short; long

short; medium and long

Which smoothing constant adjusts for trend? Multiple choice question. β Reason: The smoothing constant delta (δ) adjusts for trends. λ Reason: The smoothing constant delta (δ) adjusts for trends. α Reason: The smoothing constant delta (δ) adjusts for trends. δ

δ