Chap015 - Chapter 15 - Demand Management and Forecasting...

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Chapter 15 - Demand Management and Forecasting Chapter 15 Demand Management and Forecasting True / False Questions 1. Continual review and updating in light of new data is a forecasting technique called second-guessing. FALSE Level: Easy 2. Independent demand is the demand for a product or service caused by the demand for other products or services. FALSE Level: Easy 3. There is not much that a firm can to influence independent demand. FALSE Level: Medium 4. Cyclical influences on demand are often expressed graphically as a linear function that is either upward or downward sloping. FALSE Level: Easy 15-1
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Chapter 15 - Demand Management and Forecasting 5. Cyclical influences on demand may come from occurrences such as political elections, war or economic conditions. TRUE Level: Easy 15-2
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Chapter 15 - Demand Management and Forecasting 6. Trend lines are usually the last things considered when developing a forecast. FALSE Level: Easy 7. Time series forecasting models make predictions about the future based on analysis of past data. TRUE Level: Easy 8. In the weighted moving average forecasting model the weights must add up to one times the number of data points. FALSE Level: Easy 9. In a forecasting model using simple exponential smoothing the data pattern should remain stationary. TRUE Level: Medium 10. In a forecasting model using simple moving average the shorter the time span used for calculating the moving average, the closer the average follows volatile trends. TRUE Level: Medium 15-3
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Chapter 15 - Demand Management and Forecasting 11. In the simple exponential smoothing forecasting model you need at least 100 observations to set the weight. FALSE Level: Easy 12. People with no or modest analytical backgrounds can make good use of causal regression forecasting models. FALSE Level: Easy 13. Box-Jenkins forecasting models deliver very precise forecasts and are most useful to people with unsophisticated analytical backgrounds. FALSE Level: Easy 14. Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model. TRUE Level: Easy 15. The weighted moving average forecasting model uses a weighting scheme to modify the effects of individual data points. This is its major advantage over the simple moving average model. TRUE Level: Easy 15-4
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Chapter 15 - Demand Management and Forecasting 16. A central premise of exponential smoothing is that more recent data is less indicative of the future than data from the distant past. FALSE Level: Easy 17. The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast. FALSE Level: Medium 18. Exponential smoothing is always the most accurate of all forecasting models. FALSE
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This note was uploaded on 07/17/2011 for the course MBA 587 taught by Professor None during the Spring '11 term at Missouri (Mizzou).

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Chap015 - Chapter 15 - Demand Management and Forecasting...

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