ISDS TEST QUESTIONS AND ANSWERS ALL CORRECT
The forecasting method that is appropriate when the time series has no significant trend, cyclical, or seasonal effect is
a. moving averages
b. mean squared error
c. mean average deviation
d. qualitative forecasting methods - Answer-a (moving ave...
The forecasting method that is appropriate when the time series has no significant
trend, cyclical, or seasonal effect is
a. moving averages
b. mean squared error
c. mean average deviation
d. qualitative forecasting methods - Answer-a (moving averages)
If data for a time series analysis is collected on an annual basis only, which component
may be ignored?
a. trend
b. seasonal
c. cyclical
d. irregular - Answer-b (seasonal)
One measure of the accuracy of a forecasting model is the
a. smoothing constant
b. trend component
c. mean absolute deviation
d. seasonal index - Answer-c (mean absolute deviation)
Which of the following is a qualitative forecasting method?
a. trend projection
b. time series method
c. smoothing method
d. Delphi method - Answer-d (Delphi method)
Which of the following forecasting methods puts the least weight on the most recent
time series value?
a. exponential smoothing with α = .3
b. exponential smoothing with α = .2
c. moving average using the most recent 4 periods
, d. moving average using the most recent 3 periods - Answer-b (exponential smoothing
with α = .2)
Using exponential smoothing, the demand forecast for time period 10 equals the
demand forecast for time period 9 plus
a. α times (the demand forecast for time period 8)
b. α times (the error in the demand forecast for time period 9)
c. α times (the observed demand in time period 9)
d. α times (the demand forecast for time period 9) - Answer-b (α times (the error in the
demand forecast for time period 9))
Which of the following exponential smoothing constant values puts the same weight on
the most recent time series value as does a 5-period moving average?
a. α = .2
b. α = .25
c. α = .75
d. α = .8 - Answer-a (α = .2)
The time series component that is analogous to the seasonal component but over a
longer period of time is the
a. irregular component
b. trend component
c. causal component
d. cyclical component - Answer-d (cyclical component)
Time series methods
a. discover a pattern in historical data and project it into the future.
b. include cause-effect relationships.
c. are useful when historical information is not available.
d. All of the alternatives are true. - Answer-a (discover a pattern in historical data and
project it into the future.)
Gradual shifting of a time series over a long period of time is called
a. periodicity.
b. cycle.
c. regression.
d. trend. - Answer-d (trend.)
Seasonal components
a. cannot be predicted.
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