ISQS 2/10 (Chapter 4)

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 .78 means that there is a .78 unit rise in Y per period.

deal with less comprehensive issues supporting management decisions

As compared to long-range forecasts, short-range forecasts

true

Focus forecasting tries a variety of computer models and selects the best one for a particular application.

is an indication that product demand is declining.

For a given product demand, the time-series trend equation is 53 - 4x. The negative sign on the slope of the equation

short-range, medium-range, and long-range

Forecasts are usually classified by time horizon into which three categories?

true

Forecasts may be influenced by a product's position in its lifecycle.

exponential smoothing forecast

A forecast based on the previous forecast plus a percentage of the forecast error is an

medium range forecast

A forecast with a time horizon of about 3 months to 3 years is typically called a

in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power

A fundamental distinction between trend projection and linear regression is that

false

A naive forecast for September sales of a product would be equal to the forecast of August.

true

A naive forecast for September sales of a product would be equal to the sales in August.

is rather stable

A six-month moving average forecast is generally better than a three-month moving average forecast if demand

adaptive smoothing

Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is characteristic of

true

Cycles and random variations are both components of time series.

true

Demand for individual products can be driven by product life cycles.

true

Demand forecasts serve as inputs to financial, marketing, and personnel planning.

false

Forecasts of individual products tend to be more accurate than forecasts of product families.

long-range time horizon

Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a