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Chapter 10 - Forecasting
Chapter 10 Forecasting Answer Key
Multiple-Choice Questions
1. A qualitative forecast would most likely be used for
2. A regression model is an example of which type of forecasting method?
3. When should qualitative methods NOT be used?
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4. A small company that manufactures rubber boots is selecting a method to forecast demand
for the next 10 years. The company recently expanded its facilities, doubling its capacity.
Which of the following forecasting methods would be preferred?
5. The difference between actual demand and the forecast is
6. If a sales representative tells his or her manager, "I hope to sell 20% more than last year,"
this should be considered
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10. Given the following information for period 15, what will be the smoothed mean absolute
deviation for period 16?
11. The Grand Bakery produces 60 special sourdough rolls every day. Any rolls that are not
sold each day are given to the employees. The bakery collected sales data from the past week:
Day
Rolls Sold
1
50
2
50
3
48
4
60
5
53
6
60
What is the value of F6 if the bakery uses a 3-day weighted moving average with W1 = 0.6,
W2 = 0.2, and W3 = 0.2?
Chapter 10 - Forecasting
12. Using the data from Question 11, calculate the forecast for period 7 using a four-period
moving average:
13. Which of the following is NOT a measure of forecast accuracy?
14. Which phrase most closely describes the Delphi forecasting technique?
Chapter 10 - Forecasting
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18. Forecast error is used for all of the following EXCEPT
19. If one time series model is used for forecasting a low-demand item and another time series
model is used for forecasting a high-demand item, which measure of forecast accuracy
provides a valid comparison of the errors from these two time series?
20. A method of forecasting that best describes the flows from one sector of the economy to
another is called
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21. Which of the following is NOT one of the most important factors in selecting a
forecasting method?
22. _____ models are usually more accurate than ______ models for medium-to-long-range
forecasts.
23. Which of the following is NOT true about collaborative planning, forecasting, and
replenishment (CPFR)?
