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A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year?


A) 40,450
B) 40,600
C) 42,100
D) 42,250
E) 42,400

F) B) and E)
G) B) and C)

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Which of the following features would not generally be considered common to all forecasts?


A) Assumption of a stable underlying causal system.
B) Actual results will differ somewhat from predicted values.
C) Historical data is available on which to base the forecast.
D) Forecasts for groups of items tend to be more accurate than forecasts for individual items.
E) Accuracy decreases as the time horizon increases.

F) D) and E)
G) A) and D)

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A forecast based on the previous forecast plus a percentage of the forecast error is:


A) a naive forecast.
B) a simple moving average forecast.
C) a centered moving average forecast.
D) an exponentially smoothed forecast.
E) an associative forecast.

F) A) and B)
G) A) and C)

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Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-4 = 0.1, wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.4. Demand observed in the previous four periods was as follows: At-4 = 380, At-3 = 410, At-2 = 390, At-1 = 400. What will be the demand forecast for period t?


A) 402
B) 397
C) 399
D) 393
E) 403

F) None of the above
G) A) and C)

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