Chapter 4 ISQS
As compared to long-range forecasts, short-range forecasts:
deals with less comprehensive issues supporting management decisions
Forecasts of individual products tend to be more accurate than forecasts of product families.
false
A naïve forecast for September sales of a product would be equal to the sales in August.
true
A time-series model uses a series of past data points to make the forecast.
true
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period.
true
Cycles and random variations are both components of times series
true
Demand for individual products can be driven by product life cycles.
true
Demand forecasting serve as inputs to financial, marketing and personal planning
true
Focus forecasting tries a variety of computer models and selects the best one for a particular application.
true
Forecasts may be influenced by a product's position in its life cycle.
true
Computer monitoring of signals and self-adjustment if a signal passes a present limit is a characteristic of
adaptive smoothing
A forecast based on the previous forecast plus a percentage of the forecast error is a(n)
exponential shooting forecast
A naïve forecast for September sales of a product would be equal to the forecast for August.
false
A fundamental distinction between trend projection and linear regression is that:
in trend projection the independent variable is the time in linear regression the independent variable need not be time but can be any variable with explanatory power
For a given product demand, the time-series trend equation is 53 - 4 x. The negative sign on the slope of the equation:
is an indication that product demand is declining.
A six-month moving average forecast is generally better than a three-month moving average forecast if demand:
is rather stable
Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a:
long-range time horizon.
A forecast with a time horizon of about 3 months to 3 years is typically called a:
medium-range forecast.
Forecasts are usually classified by time horizon into three categories?
short-range, medium-range, & long range
