Reference no: EM13100493

1 Which is not a correct statement about forecasting?
Forecast accuracy tends to increase as the forecasting horizon decreases
Forecasting becomes more challenging as we move downstream in the supply chain from the supplier to the retailer
Forecast accuracy tends to decrease as individual items are considered instead of an aggregate family of items.
Every forecast must include a measure of error
Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time.
tactical implications; strategic
order qualifiers; order winners
order winners; order qualifiers
profitability factors; productivity factors
3. 3 If the following forecast resulted in an MAD of 2, what can you say about the third month's sales?
Month: 1 2 3 4
Sales: 20 22 - 17
Forecast: 23 21 20 19
a. can be 18 or 22
b. must be between 18 and 22
c. must be 18
d. can be 15 or 25
4. 4 A regression model that predicts sales is given as: Sales = 100 - 6*(Price). Which of the following can be said based on this model?
a. Every $ increase in Price will drop the sales by 100-6=94 units.
b. Every $ decrease in Price will increase the sales by 6 units.
c. There is a positive linear relationship between sales and price
d. Sales is an independent variable and Price is a dependent variable
5. 5 The multiple linear regression (MR) analysis is different from the simple linear regression analysis (SR) in that
a. MR uses multiple independent (predictor) variables, SR uses only one.
b. MR uses multiple dependent (predicted) variables, SR uses only one
c. MR is a time-series model, SR is not
d. SR is an associative (causal) forecasting model, MR is not
6. 6 A restaurant manager developed a model to estimate the number of people that show up on a given day of the week. She is using the equation Ft=50+5t to estimate the linear trend. She determined that the seasonality factor for each day from Monday through Thursday is 0.8, and the seasonality factor for each of the other days is 1.5. If today (Feb 13, Thursday) is t=0, how many people are expected on Sunday, Feb 23th?
a. 75
b. 150
c. 80
d. 100
7. 7 Consider the exam score prediction model we developed in class:
Exam Score = 59.3 + 2.53*(Number of weekly study hours) + 4.19*(Interested in the material Yes=1, No=0).
Assuming you are interested in the material and aiming for an exam score of 94, how many study hours (approximately) should you allocate weekly?
a. 9
b. 12
c. 10
d. 16
8. 8 Consider the following actions:
I: seasonalization by multiplying the deasonalized forecast with the seasonality index
II: computation of seasonal indexes
III: developing a forecast based on deseasonalized series
IV: deasonalization by dividing the data series by the seasonality index
In developing a multiplicative seasonality forecasting model, which of the following gives the required steps in the correct order?
a. II, IV,I, III
b. III, II, IV, I
c. II, IV, III, I
d. II, III, IV, I
9. 9 What is the capacity of the following sequential process (in units per hour)?
a. 25
b. 30
c. 15
d. 90