ch3 - ch3 Student 1 Forecasting techniques generally assume...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ch3 Student: ___________________________________________________________________________ 1. Forecasting techniques generally assume an existing causal system that will continue to exist in the future. True False 2. For new products in a strong growth mode, a low alpha will minimize forecast errors when using exponential smoothing techniques. True False 3. Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast. True False 4. Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors. True False 5. Forecasts help managers plan both the system itself and provide valuable information for using the system. True False 6. Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts. True False 7. When new products or services are introduced, focus forecasting models are an attractive option. True False 8. The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level can be understood. True False 9. Forecasts based on time series (historical) data are referred to as associative forecasts. True False 10. Time series techniques involve identification of explanatory variables that can be used to predict future demand. True False 11. A consumer survey is an easy and sure way to obtain accurate input from future customers since most people enjoy participating in surveys. True False 12. The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast. True False 13. Exponential smoothing adds a percentage (called alpha) of last period's forecast to estimate next period's demand. True False 14. The shorter the forecast period, the more accurately the forecasts tend to track what actually happens. True False
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
15. Forecasting techniques that are based on time series data assume that future values of the series will duplicate past values. True False 16. Trend adjusted exponential smoothing uses double smoothing to add twice the forecast error to last periods actual. True False 17. Forecasts based on an average tend to exhibit less variability than the original data. True False 18. The naive approach to forecasting requires a linear trend line. True False 19. The naive forecast is limited in its application to series that reflect no trend or seasonality. True False 20. The naive forecast can serve as a quick and easy standard of comparison against which to judge the cost and accuracy of other techniques. True False 21. A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern