Chapter 4 Forecasting

C. the naive approach

"Today's forecast equals yesterday's actual demand" is referred to as: A. a moving average B. exponential smoothing C. the naive approach D. the Delphi method

D. a bias

A consistent tendency for forecasts to be greater than the actual values is called ___ error? A. a trend B. an unbalanced C. an extreme D. a bias

B. an economic forecast

A forecast that addresses the business cycle by predicting planning indicators is: A. an environmental forecast B. an economic forecast C. a technological forecast D. a demand forecast

B. a demand forecast

A forecast that projects a company's sales is: A. a technological forecast B. a demand forecast C. an environmental forecast D. an economic forecast

D. short range

The forecasting time horizon that would typically be easiest to predict for would be the: A. medium range B. intermediate range C. long range D. short range

D. seasonality

What is a data pattern that repeats itself after a period of days, weeks, months, or quarters: A. random variation B. trend C. cycle D. seasonality

D. Outside factors that we cannot predict or control often impact the forecast.

Which of the following is a reality each company faces regarding its forecasting system? A. After automating their predictions using computerized forecasting​ software, firms closely monitor only the product items whose demand is stable. B. Most forecasting techniques assume there is no underlying stability in the system C. Product family forecasts are less accurate than individual product forecasts D. Outside factors that we cannot predict or control often impact the forecast.

D. validate and implement the results

Which of the following is the FINAL step in a forecasting system: A. gather the data needed to make the forecast B. make the forecast C. select the forecast model(s) D. validate and implement the results

C. determine the use of the forecast

Which of the following is the FIRST step in a forecasting system? A. select the forecast model(s) B. select the items to be forecasted C. determine the use of the forecast D. determine the time horizon of the forecast

C. Forecasting is exclusively an objective prediction.

Which of the following statements is NOT true regarding forecasting: A. Forecasting may involve taking historical data and projecting them into the future with a mathematical model. B. Forecasting is the art and science of predicting future events C. Forecasting is exclusively an objective prediction. D. A forecast is usually classified by the future time horizon that it covers.