Question 1

For every forecasting problem there is one best forecasting technique.

Accepted Answer

There is no one-size-fits-all forecasting technique. The best approach depends on the data characteristics and the specific problem being addressed. Different techniques may also be combined to achieve better results.

Question 2

Which of the following forecasting methods uses executive judgment as its primary component for forecasting?

Accepted Answer

Panel consensus is a forecasting method that relies on the knowledge and opinions of a group of experts or executives who have familiarity and experience with the product or market being forecasted. Their judgments are combined and averaged to generate a forecast.

Question 3

Which of the following forecasting methodologies is considered a time series forecasting technique?

Accepted Answer

The Box Jenkins technique is a time series forecasting technique that uses statistical models to analyze and forecast data points over time.

Question 4

Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?

Accepted Answer

The Delphi method relies heavily on the selection of experts with knowledge and experience in the relevant field to generate the forecast through a process of iteration, feedback, and discussion. The accuracy and reliability of the forecast generated through the Delphi method is greatly dependent on the expertise and judgment of the selected panel of experts. Thus, the Delphi method is very dependent on the selection of the right individuals who will judgmentally be used to actually generate the forecast.

Question 5

In business forecasting,what is usually considered a medium-term time period?

Accepted Answer

Three months to two years is commonly considered as a medium-term time period in business forecasting.

Question 6

Which of the following is not one of the basic types of forecasting?

Accepted Answer

The basic types of forecasting include qualitative, time series analysis, and causal relationships. Simulation can also be considered a type of forecasting, but it is not included in the basic types. Force field analysis is not a type of forecasting, but rather a tool used in change management.

Question 7

Which of the following forecasting methodologies is considered a time series forecasting technique?

Accepted Answer

The answer of Which of the following forecasting methodologies is...

Question 8

In most cases,demand for products or services can be broken into several components.Which of the following is considered a component of demand?

Accepted Answer

Cyclical elements are considered a component of demand, as they reflect the fluctuations in demand over certain periods due to factors like seasons, economic cycles, or holidays.

Question 9

In general,which forecasting time frame compensates most effectively for random variation and short term changes?

Accepted Answer

The answer of In general,which forecasting time frame compensates most...

Question 10

"Dynamic models,usually computer-based,that allow the forecaster to make assumptions about the internal variables and external environment in the model" is a definition for which of the following forecasting methodologies?

Accepted Answer

The definition given is a clear indication of a simulation model. Therefore, option B is correct. Option A (Causal) deals with relationships between variables, option C (Focus forecasting) is a method that applies subjective inputs to forecasting, option D (Shiskin Time series) is a method that removes the effects of seasonality, and option E (Market research) is a method that involves collecting data to uncover insights about customers or market trends.

Question 11

Which of the following forecasting methodologies is considered a causal forecasting technique?

Accepted Answer

Leading indicators are considered a causal forecasting technique because they use economic or other external data to predict future demand for a product or service. This method analyzes the cause-and-effect relationship between the leading indicators and the demand for the product or service. The other options listed are not considered causal forecasting techniques.

Question 12

Focus forecasting is an approach to forecasting that tries several rules that seem logical and easy to understand to project past data into the future.

Accepted Answer

Focus forecasting is a real approach to forecasting that involves trying numerous applicable and understandable rules to predict past data into the future.

Question 13

A good forecaster is one who develops special skills and experience at one forecasting technique and is capable of applying it to widely diverse situations.

Accepted Answer

A good forecaster develops a range of forecasting techniques and has the ability to choose and apply the appropriate technique for each particular situation. This allows for a more accurate and comprehensive forecast.

Question 14

In business forecasting,what is usually considered a short-term time period?

Accepted Answer

Short-term time period usually refers to a time frame of less than three months in business forecasting.

Question 15

In most cases,demand for products or services can be broken into several components.Which of the following is not considered a component of demand?

Accepted Answer

Past demand is historical data used to analyze demand but is not a component of future demand itself.

Question 16

Which of the following forecasting methodologies is considered a causal forecasting technique?

Accepted Answer

Input/output models are considered a causal forecasting technique as they depend on the relationship between input factors and output results. Other options listed such as market research, historical analogy, Delphi Method, and simulation are not typically considered causal forecasting techniques.

Question 17

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

Accepted Answer

Market research is a form of qualitative forecasting technique that involves analyzing customer preferences, attitudes, and behaviors through surveys, focus groups, and other methods. Methods like simple moving average, linear regression, and multiple regression are quantitative forecasting techniques, while focus forecasting is a hybrid approach that combines qualitative and quantitative methods.

Question 18

In business forecasting,what is usually considered a long-term time period?

Accepted Answer

Long-term forecasting in business typically refers to a period of two years or longer, as it involves strategic planning over an extended timeframe.

Question 19

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

Accepted Answer

Qualitative forecasting techniques are subjective and based on expert judgment, opinions, and feedback from customers or employees. Grassroots forecasting relies on the opinions and input of front-line employees, making it a qualitative technique. The other options listed (econometric models, regression analysis, exponential smoothing, and simple moving average) are quantitative forecasting techniques that use statistical data and mathematical models.

Question 20

In most cases,demand for products or services can be broken into several components.Which of the following is considered a component of demand?

Accepted Answer

The answer of In most cases,demand for products or services...

Quiz 15: Demand Management and Forecasting

For every forecasting problem there is one best forecasting technique.

Which of the following forecasting methods uses executive judgment as its primary component for forecasting?

Which of the following forecasting methodologies is considered a time series forecasting technique?

Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?

In business forecasting,what is usually considered a medium-term time period?

Which of the following is not one of the basic types of forecasting?

Which of the following forecasting methodologies is considered a time series forecasting technique?

In most cases,demand for products or services can be broken into several components.Which of the following is considered a component of demand?

In general,which forecasting time frame compensates most effectively for random variation and short term changes?

"Dynamic models,usually computer-based,that allow the forecaster to make assumptions about the internal variables and external environment in the model" is a definition for which of the following forecasting methodologies?

Which of the following forecasting methodologies is considered a causal forecasting technique?

Focus forecasting is an approach to forecasting that tries several rules that seem logical and easy to understand to project past data into the future.

A good forecaster is one who develops special skills and experience at one forecasting technique and is capable of applying it to widely diverse situations.

In business forecasting,what is usually considered a short-term time period?

In most cases,demand for products or services can be broken into several components.Which of the following is not considered a component of demand?

Which of the following forecasting methodologies is considered a causal forecasting technique?

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

In business forecasting,what is usually considered a long-term time period?

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

In most cases,demand for products or services can be broken into several components.Which of the following is considered a component of demand?