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CHAPTER
4:
FORECAS
TING
1.
A naïve
forecast for
September sales
of a product
would be equal to
the forecast for
August.
False
(Time
series
forecastin
g,
moderate)
2.
The
forecasting
time
horizon
and the
forecasting
techniques
used tend
to vary
over the
life cycle
of a
product.
True
(What is
forecasting
?
moderate)
3.
Demand
(sales) forecasts
serve as inputs to
financial,
marketing, and
personnel
planning.
True
(Types of
forecasts,
moderate)
4.
Forecasts of individual products tend to be more accurate than
forecasts of product families.
False (Seven steps in the forecasting system, moderate)
5.
Most forecasting techniques assume that there is some underlying
stability in the system.
True (Seven steps in the forecasting system, moderate)
6.
The sales force composite forecasting method relies on
salespersons’ estimates of expected sales.
True (Forecasting approaches, easy)
7.
A timeseries model uses a series of past data points to make the
forecast.
True (Forecasting approaches, moderate)
8.
The quarterly "make meeting" of Lexus dealers is an example of a
sales force composite forecast.
True (Forecasting approaches, easy)
9.
Cycles and random variations are both components of time series.
True (Timeseries forecasting, easy)
10.
A naive forecast for September sales of a product would be equal
to the sales in August.
True (Timeseries forecasting, easy)
11.
One advantage of exponential smoothing is the limited amount of
record keeping involved.
True (Timeseries forecasting, moderate)
12.
The larger the number of periods in the simple moving average
forecasting method, the greater the method's responsiveness to
changes in demand.
False (Timeseries forecasting, moderate)
13.
Forecast including trend is an exponential smoothing
technique that utilizes two smoothing constants: one for the
average level of the forecast and one for its trend.
True (Timeseries forecasting, easy)
6
1
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Mean Squared Error and Coefficient of Correlation are two measures of the overall
error of a forecasting model.
False (Timeseries forecasting, easy)
15.
In trend projection, the trend component is the slope of the regression equation.
True (Timeseries forecasting, easy)
16.
In trend projection, a negative regression slope is mathematically impossible.
False (Timeseries forecasting, moderate)
17.
Seasonal indexes adjust raw data for patterns that repeat at regular time intervals.
True (Timeseries forecasting, moderate)
18.
If a quarterly seasonal index has been calculated at 1.55 for the OctoberDecember
quarter, then raw data for that quarter must be multiplied by 1.55 so that the quarter can
be fairly compared to other quarters.
False (Timeseries forecasting: Seasonal variation in data, moderate)
19.
The best way to forecast a business cycle is by finding a leading variable.
True (Timeseries forecasting, moderate)
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This note was uploaded on 10/16/2011 for the course MARKETING 1234s taught by Professor Mohammed during the Spring '11 term at Abu Dhabi University.
 Spring '11
 MOHAMMED

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