Forecast Questions
Chapter 3
True or false
Forecasting techniques assume a causal system
It is quite likely that a perfect forecast can be achieved
Forecasts should rarely be changed
A short forecast horizon allows companies to respond more quickly to changing conditions
True or false
Long range forecasts tend to be less accurate than short range forecasts
There is no difference between irregular and random variation
More data points in a moving average forecast increases its responsiveness
A lower smoothing constant will cause an exponential smoothing forecast to react more quickly to a sudden change than a smoothing constant
True or false
A proactive approach to forecasting views forecasts as probable descriptions of the future and requires that action be taken to meet that demand
A proactive approach might include advertising
The answer please
Forecasts help managers to:
What features are common to all forecasts?
What is the first step in the forecasting process?
What are the two general approaches to forecasting?
What is the Delphi technique?
The answer please
What are the differences between trends, cycles, irregularities, and seasonality?
Averaging techniques are useful for:
What are the advantages to the naïve forecasting technique?
What are the characteristics of simple moving averages applied to time series data?
The answer please
How can the responsiveness of a simple moving average be increased?
What are the elements of an exponentially smoothed forecast?
What are the characteristics of exponential smoothing?
Calculate the demand for a period using
Naïve, moving averages, weighted moving averages, exponential smoothing, and linear trend (given the linear trend equation)
The answer please
What is MAD and how do you calculate it?
What are the requirements of a properly prepared forecast?
What are the approaches management can have towards forecasts?