PM(JM2019): Forecasting

Accurate forecasts can be obtained if the necessary time and effort are invested.

• True

• False

One of the disadvantages of the exponential smoothing method is that it requires more data than the other methods.

• True

• False

When using the exponential smoothing method, a smaller smoothing factor α will have more of a noise-reduction impact and produce more stable forecasts.

• True

• False

The further in advance a forecast is made, the more accurate it will be.

• True

• False

Which of the following is not a step in the forecasting process?

• Determine the use of the forecast.

• Eliminate any assumptions.

• Select forecasting model.

• Validate and implement the results.

The two general approaches to forecasting are

• qualitative and quantitative

• mathematical and statistical

• historical and associative

• judgmental and qualitative

Which of the following is not a type of qualitative forecasting?

• executive opinions

• consumer surveys

• the Delphi method

• moving average

Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand?

• exponential smoothing

• weighted moving average

• regression analysis

• simple moving average

Time series data may exhibit which of the following behaviors?

• trend

• random variations

• seasonality

• They may exhibit all of the above.

Gradual, long-term movement in time series data is called

• seasonal variation

• cycles

• trends

• random variation