STUDY.COM BUS 212-CHAPTER 15

If a charter jet for hire logged 20,000 miles in billable trips last month and 45,000 miles in billable trips this month, what is the monthly growth rate?

125%

Turtle Recovery has recognized an increase in turtles on the roadway. Each month the number of turtles recovered from being stranded on the roads has increased by 5%. The root cause has been linked to new construction in the lake region of the city. In March, the number of turtles rescued was 125. How many could the rescue team expect in May?

138

Rachel is a portfolio manager for a major financial advising firm. She is currently advising a client with regard to the purchase of mortgage-backed securities. As she conducts research, Rachel references an index that looks at mortgage data for the last 10 years. Assume that the current year is 2019. What year would be considered the index's base year?

2009

What is qualitative forecasting?

Forecasting dealing with information that is not necessarily numbers-based

What is quantitative forecasting?

Forecasting using numbers that are currently on hand

Every year retailers plan on a vibrant holiday shopping season. What type of time series analysis is best used for these companies?

Seasonal

Because it compiles data from several other indexes, the Consumer Price Index would be considered a/an _____ index.

aggregated

A business is contemplating an expansion. The company could build to the north, the east, or it could decide not to expand at all. North, east and no change are best characterized as:

alternatives

Time series analysis is LEAST helpful in forecasting and predictive applications when the _____.

data is a random sample or measured at random intervals over time.

Both payoff tables and decision trees are used to calculate or predict the _____ of a particular event combination occurring.

probability

The most fundamental purpose of an index in business is to facilitate:

Accurate comparisons and benchmarks

Which statement about strategic decision-making using a payoff table is TRUE?

Decision trees and payoff tables will be inaccurate unless both internal and external influences are considered.

What is forecasting?

The ability of a company to predict future events

Jim's Solutions Inc has recently expanded into a new market after seeing extremely favorable results in his existing market on his decision tree. What common mistake is likely to be at fault for this unexpectedly negative result in the new market?

The decision tree used by Jim's Solutions was based on, or relied on, raw data that was inaccurate.

Cracked Window Repair Company has realized an increase in sales over the past year during road construction on the interstate. The road construction is expected to end next month. However, it is time for Cracked Window to order replacement windows. It takes three months for the suppliers to ship new windows to Cracked Window. Which method of time series analysis is most appropriate for calculating the window order?

Time series analysis should not be used in this scenario.

As a leading provider of mobile medical imaging, your company is considering the purchase of a new mobile MRI machine. The machine has a price tag of nearly $1 million, and it is expected to last approximately 20 years. Using a variety of indexes, you will want to calculate the _____ before making your purchase decisions.

future value

A business in _____ is MOST likely to require a non-aggregated index when making projections.

A manufacturer of high security, encrypted cell phones

Which of these is not a type of quantitative forecasting?

Accountative

A payoff table considers:

Influences from both inside and outside the organization

Which type of forecasting is especially suited to short-term events?

Qualitative forecasting