BUS140 Chapter 4 T/F
1) A naïve forecast for September sales of a product would be equal to the forecast for August.
Answer: FALSE
4) Regression lines graphically depict "cause-and-effect" relationships.
Answer: FALSE
1) Forecasts may be influenced by a product's position in its life cycle.
Answer: TRUE
1) Forecasts of individual products tend to be more accurate than forecasts of product families.
Answer: FALSE
2) The larger the standard error of the estimate, the more accurate the forecasting model.
Answer: FALSE
3) In a regression equation where y-hat is demand and x is advertising, a coefficient of determination (R2) of .70 means that 70% of the variance in advertising is explained by demand.
Answer: FALSE
5) The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand.
Answer: FALSE
6) Mean squared error and exponential smoothing are two measures of the overall error of a forecasting model.
Answer: FALSE
8) In trend projection, a negative regression slope is mathematically impossible.
Answer: FALSE
1) If a forecast is consistently greater than (or less than) actual values, the forecast is said to be biased.
Answer: TRUE
1) Linear-regression analysis is a straight-line mathematical model to describe the functional relationships between independent and dependent variables.
Answer: TRUE
1) The sales force composite forecasting method relies on salespersons' estimates of expected sales.
Answer: TRUE
10) A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period.
Answer: TRUE
11) Demand for individual products can be driven by product life cycles.
Answer: TRUE
2) A time-series model uses a series of past data points to make the forecast.
Answer: TRUE
2) Cycles and random variations are both components of time series.
Answer: TRUE
2) Demand forecasts serve as inputs to financial, marketing, and personnel planning.
Answer: TRUE
2) Focus forecasting tries a variety of computer models and selects the best one for a particular application.
Answer: TRUE
2) Most forecasting techniques assume that there is some underlying stability in the system.
Answer: TRUE
3) A naïve forecast for September sales of a product would be equal to the sales in August.
Answer: TRUE
3) The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.
Answer: TRUE
4) One advantage of exponential smoothing is the limited amount of record keeping involved.
Answer: TRUE
7) In trend projection, the trend component is the slope of the regression equation.
Answer: TRUE
9) Seasonal indices adjust raw data for patterns that repeat at regular time intervals.
Answer: TRUE
