Which is not a characteristic of simple moving

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72. Which is not a characteristic of simple moving averages applied to time series data? A) smoothes random variations in the data B) weights each historical value equally C) lags changes in the data D) requires only last period’s forecast and actual data E) smoothes real variations in the data Answer: D Difficulty: Medium Page: 74
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73. In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be: Difficulty: Hard Page: 74
74. A forecast based on the previous forecast plus a percentage of the forecast error is: Difficulty: Hard Page: 77
75. Which is not a characteristic of exponential smoothing? Difficulty: Hard Page: 77
76. Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? A) 0 B) .01 C) .1 D) .5 E) 1.0 Answer: E Difficulty: Medium Page: 77
77. Simple exponential smoothing is being used to forecast demand. The previous forecast of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to: Difficulty: Hard Page: 77
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78. Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing? Difficulty: Medium Page: 77
79. Given an actual demand of 105, a forecasted value of 97, and an alpha of .4, the simple exponential smoothing forecast for the next period would be: Difficulty: Medium Page: 77
80. Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors? A) 0 B) .01 C) .05 D) .10 E) .15 Answer: E Difficulty: Medium Page: 77 Learning Objective: Ref

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