Forecasting In Business Strategy Quiz

10 Questions | Total Attempts: 282

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Strategy Quizzes & Trivia

Questions and Answers
  • 1. 
    Which of the following is a characteristic of demand?
    • A. 

      Mean absolute variation

    • B. 

      Seasonal variation

    • C. 

      Average variation

    • D. 

      Standard deviation

  • 2. 
    Product A is made from components B and C. Component B is made from parts D and E. Which items should be forecast?
    • A. 

      Only A

    • B. 

      A, B, and C

    • C. 

      D and E

    • D. 

      B, C, D, and E

  • 3. 
    Which of the following is the best statement about the general principles of forecasting?
    • A. 

      Forecasts are more accurate for individual items than for groups of items

    • B. 

      Forecasts are more accurate for distant periods of time

    • C. 

      Every forecast should include an estimate of error

    • D. 

      Forecasts are usually accurate

  • 4. 
    What important assumption is made about statistical (quantitative) forecasting methods?
    • A. 

      The past is a valid indicator of the future

    • B. 

      Demand trend is seldom linear

    • C. 

      Seasonal variations are small

    • D. 

      Random variations are small

  • 5. 
    Which forecasting technique takes the average demand for some past number of periods?
    • A. 

      Trend time average

    • B. 

      Moving average

    • C. 

      Demand smoothing

    • D. 

      Qualitative analysis

  • 6. 
    Why is it important to monitor the forecast?
    • A. 

      To compare the actual sales with the forecast

    • B. 

      To improve our forecasting methods

    • C. 

      To utilize actual sales data

    • D. 

      To satisfy marketing's need to know

  • 7. 
    Which of the following stateents is most accurate?
    • A. 

      Demand fluctuations that depend on the time of the year, week, or day are called trend

    • B. 

      The season index is an estimate of how much the demand during the season will be above or below the average demand

    • C. 

      Seasonality always occurs in summer, winter, spring, and fall

    • D. 

      Random variation is constant from period to period

  • 8. 
    Which of the following causes forecast error?
    • A. 

      Random variation from average demand

    • B. 

      Errors in monitoring the forecast

    • C. 

      Differences in lead times

    • D. 

      Differences between sales and demand

  • 9. 
    Which of the following statements is most accurate?
    • A. 

      Independent demand items should be forecast

    • B. 

      A forecast for sales next year will not be as accurate as a forecast for a year from now

    • C. 

      Forecasts for families of products should be built up from individual product forecasts

    • D. 

      Forecasts are almost always accurate

  • 10. 
    Which of the following statements is most accurate?
    • A. 

      If we wish to forecast demand, past sales must be used for the forecast

    • B. 

      Forecasts made in dollars for total sales should be used by manufacturing

    • C. 

      Forecasts should be made for individual items in a group

    • D. 

      The circumstances relating to demand data should be recorded

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