Question 1

Given forecast errors of - 5, - 10, and +15, the MAD is:

Accepted Answer

MAD is calculated by taking the absolute value of the forecast errors, summing them, and dividing by the number of forecasts.

MAD = (|-5| + |-10| + |15|)/3 = 30/3 = 10.

Therefore, the MAD is 10, which is option B.

Question 2

A new car dealer has been using exponential smoothing with an alpha of .2 to forecast weekly new car sales.Given the data below, would a naive forecast have provided greater accuracy? Explain.Assume an initial exponential forecast of 60 units in period 2 .

Accepted Answer

The answer of A new car dealer has been using...

Question 3

Over the past five years, a firm's sales have averaged 250 units in the first quarter of each year, 100 units in the second quarter, 150 units in the third quarter, and 300 units in the fourth quarter.What are appropriate quarter relatives for this firm's sales? Hint: Only minimal computations are necessary.

Accepted Answer

The answer of Over the past five years, a firm's...

Question 4

A manager has been using a certain technique to forecast demand for gallons of ice cream for the past six periods.Actual and predicted amounts are shown below.Would a naive forecast have produced better results?

Accepted Answer

The answer of A manager has been using a certain...

Question 5

Use linear regression to develop a predictive model for demand for burial vaults based on sales of caskets.

Accepted Answer

The answer of Use linear regression to develop a predictive...

Question 6

Given the following historical data, what is the simple three-period moving average forecast for period 6?

Accepted Answer

The answer of Given the following historical data, what is...

Question 7

A manager is using the equation below to forecast quarterly demand for a product: Y_t = 6,000 + 80t where t = 0 at Q2 of last year Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2. What forecasts are appropriate for the last quarter of this year and the first quarter of next year?

Accepted Answer

The answer of A manager is using the equation below...

Question 8

Given the following data, develop a linear regression model for y as a function of x.

Accepted Answer

The answer of Given the following data, develop a linear...

Question 9

Develop a forecast for the next period, given the data below, using a 3-period moving average.

Accepted Answer

The answer of Develop a forecast for the next period,...

Question 10

Develop a linear trend equation for the data on bread deliveries shown below.Forecast deliveries for period 11 through 14.

Accepted Answer

The answer of Develop a linear trend equation for the...

Question 11

Given the following data, develop a linear regression model for y as a function of x.

Accepted Answer

The answer of Given the following data, develop a linear...

Question 12

Use of simple linear regression analysis assumes that:

Accepted Answer

Simple linear regression analysis assumes that variations around the line are random, deviations around the line are normally distributed, and predictions are to be made only within the range of observed values of the predictor variable. Therefore, all of the above options are correct.

Question 13

Consider the data below:
 Using exponential smoothing with alpha = .2, and assuming the forecast for period 11 was 80, what would the forecast for period 14 be?

Accepted Answer

The answer of Consider the data below:
 Using exponential smoothing...

Question 14

A manager is using exponential smoothing to predict merchandise returns at a suburban branch of a department store chain.Given a previous forecast of 140 items, an actual number of returns of 148 items, and a smoothing constant equal to .15, what is the forecast for the next period?

Accepted Answer

The answer of A manager is using exponential smoothing to...

Question 15

Given the following historical data and weights of .5, .3, and .2, what is the three-period moving average forecast for period 5?

Accepted Answer

The answer of Given the following historical data and weights...

Question 16

The president of State University wants to forecast student enrollments for this academic year based on the following historical data:  What is the forecast for this year using the naive approach?

Accepted Answer

The answer of The president of State University wants to...

Question 17

A manager wants to choose one of two forecasting alternatives.Each alternative was tested using historical data.The resulting forecast errors for the two are shown in the table.Analyze the data and recommend a course of action to the manager.

Accepted Answer

The answer of A manager wants to choose one of...

Question 18

Demand for the last four months was:

Accepted Answer

The answer of Demand for the last four months was:...

Question 19

A CPA firm has been using the following equation to predict annual demand for tax audits: Yt = 55 + 4t Demand for the past few years is shown below.Is the forecast performing as well as it might? Explain.

Accepted Answer

The answer of A CPA firm has been using the...

Question 20

Given the data below, develop a forecast for period 6 using a four-period weighted moving average and weights of .4, .3, .2 and .1

Accepted Answer

The answer of Given the data below, develop a forecast...

Quiz 3: Forecasting

Given forecast errors of - 5, - 10, and +15, the MAD is:

A new car dealer has been using exponential smoothing with an alpha of .2 to forecast weekly new car sales.Given the data below, would a naive forecast have provided greater accuracy? Explain.Assume an initial exponential forecast of 60 units in period 2 .

A manager has been using a certain technique to forecast demand for gallons of ice cream for the past six periods.Actual and predicted amounts are shown below.Would a naive forecast have produced better results?

Use linear regression to develop a predictive model for demand for burial vaults based on sales of caskets.

Given the following historical data, what is the simple three-period moving average forecast for period 6?

A manager is using the equation below to forecast quarterly demand for a product: Yt = 6,000 + 80t where t = 0 at Q2 of last year Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2. What forecasts are appropriate for the last quarter of this year and the first quarter of next year?

Given the following data, develop a linear regression model for y as a function of x.

Develop a forecast for the next period, given the data below, using a 3-period moving average.

Develop a linear trend equation for the data on bread deliveries shown below.Forecast deliveries for period 11 through 14.

Given the following data, develop a linear regression model for y as a function of x.

Use of simple linear regression analysis assumes that:

Consider the data below: Using exponential smoothing with alpha = .2, and assuming the forecast for period 11 was 80, what would the forecast for period 14 be?

A manager is using exponential smoothing to predict merchandise returns at a suburban branch of a department store chain.Given a previous forecast of 140 items, an actual number of returns of 148 items, and a smoothing constant equal to .15, what is the forecast for the next period?

Given the following historical data and weights of .5, .3, and .2, what is the three-period moving average forecast for period 5?

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: What is the forecast for this year using the naive approach?

A manager wants to choose one of two forecasting alternatives.Each alternative was tested using historical data.The resulting forecast errors for the two are shown in the table.Analyze the data and recommend a course of action to the manager.

Demand for the last four months was:

A CPA firm has been using the following equation to predict annual demand for tax audits: Yt = 55 + 4t Demand for the past few years is shown below.Is the forecast performing as well as it might? Explain.

Given the data below, develop a forecast for period 6 using a four-period weighted moving average and weights of .4, .3, .2 and .1

A manager is using the equation below to forecast quarterly demand for a product: Y_t = 6,000 + 80t where t = 0 at Q2 of last year Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2. What forecasts are appropriate for the last quarter of this year and the first quarter of next year?