(Forecasting and Predictive Analytics with ForecastX, 7e Keating)
(Test Bank all Chapters)
Forecasting and Predictive Analytics with Forecast X, 7e (Keating)
Chapter 1 Introduction to Business Forecasting and Predictive Analytics
1) Which of the following does not require sophisticated quantitative forecasts?
A) Accounting revenue forecasts for tax purposes.
B) Money managers use of interest rate forecasts for asset allocation decisions.
C) Managers of power plants using weather forecasts in forecasting power demand.
D) State highway planners require peak load forecasts for planning purposes.
E) All of the options require sophisticated quantitative forecasts.
Answer: E
Difficulty: 1 Easy
Topic: Forecasting in Business Today
Learning Objective: 1-03 Distinguish between qualitative and quantitative forecasting.
Accessibility: Keyboard Navigation
Gradable: automatic
2) Under what circumstances may it make sense not to prepare a business forecast?
A) No data is readily available.
B) The future will be no different from the past.
C) The forecast horizon is 40 years.
D) There is no consensus among informed individuals.
E) The industry to forecast is undergoing dramatic change.
Answer: B
Difficulty: 1 Easy
Topic: Forecasting and Supply Chain Management
Learning Objective: 1-05 Explain how forecasting relates to supply chain efficiency.
Accessibility: Keyboard Navigation
Gradable: automatic
3) What is most likely to be the major difference between forecasting sales of a private business
versus forecasting the demand of a public good supplied by a governmental agency?
A) Amount of data available
B) Underlying economic relationships
C) Lack of market-determined price data for public goods
D) Last of historical data
E) Lack of quantitative ability by government forecasters
Answer: C
Difficulty: 1 Easy
Topic: Forecasting in The Public and Not-For-Profit Sectors
Learning Objective: 1-03 Distinguish between qualitative and quantitative forecasting.
Accessibility: Keyboard Navigation
Gradable: automatic
,4) Which of the following points about supply chain management is incorrect?
A) Forecasts are required at each step in the supply chain.
B) Forecasts of sales are required for partners in the supply chain.
C) Collaborative forecasting systems across the supply chain are needed.
D) If you get the forecast right, you have the potential to get everything else right in the supply
chain.
E) None of the options are incorrect.
Answer: E
Difficulty: 1 Easy
Topic: Forecasting and Supply Chain Management
Learning Objective: 1-05 Explain how forecasting relates to supply chain efficiency.
Accessibility: Keyboard Navigation
Gradable: automatic
5) Which of the following is not typically part of the traditional forecasting textbook?
A) Classical statistics applied to business forecasting
B) Use of computationally intensive forecasting techniques
C) Attention to simplifying assumptions about the data
D) Discussion of probability distributions
E) Attention to statistical inference
Answer: B
Difficulty: 2 Medium
Topic: Forecasting in Business Today
Learning Objective: 1-03 Distinguish between qualitative and quantitative forecasting.
Accessibility: Keyboard Navigation
Gradable: automatic
6) Which subjective forecasting method depends upon the anonymous opinion of a panel of
individuals to generate sales forecasts?
A) Sales Force Composites
B) Customer Surveys
C) Jury of Executive Opinion
D) Delphi Method
E) None of the options are correct.
Answer: D
Difficulty: 1 Easy
Topic: The Delphi Method
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
,7) Which subjective sales forecasting method may have the most information about the spending
plans of customers for a specific firm?
A) Sales Force Composites
B) Index of consumer sentiment
C) Jury of Executive Opinion
D) Delphi Method
E) None of the options are correct.
Answer: A
Difficulty: 1 Easy
Topic: Sales Force Composites
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
8) Which subjective sales forecasting technique may have problems with individuals who have a
dominant personality?
A) Sales Force Composites
B) Customer Surveys
C) Jury of Executive Opinion
D) Delphi Method
E) None of the options are correct.
Answer: C
Difficulty: 1 Easy
Topic: Jury of Executive Opinion
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
9) Which of the following methods is not useful for forecasting sales of a new product?
A) Time series techniques requiring lots of historical data
B) Delphi Method
C) Consumer Surveys
D) Test market results
E) All of the options are correct.
Answer: A
Difficulty: 1 Easy
Topic: New Product Forecasting
Learning Objective: 1-06 Discuss forecasting for new products.
Accessibility: Keyboard Navigation
Gradable: automatic
, 10) Which of the following is not considered a subjective forecasting method?
A) Sales force composites
B) Naïve methods
C) Delphi methods
D) Juries of executive opinion
E) Consumer surveys
Answer: B
Difficulty: 1 Easy
Topic: Qualitative or Subjective Forecasting Methods
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
11) Which of the following is not an argument for the use of subjective forecasting models?
A) They are easy for management to understand
B) They are quite useful for long-range forecasts
C) They provide valuable information that may not be present in quantitative models
D) They are useful when data for using quantitative models is extremely limited
E) None of the options are correct.
Answer: E
Difficulty: 1 Easy
Topic: Qualitative or Subjective Forecasting Methods
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
12) Forecasts based solely on the most recent observation of the variable of interest
A) are called "naïve" forecasts.
B) are the simplest of all quantitative forecasting methods.
C) lead to loss of one data point in the forecast series relative to the original series.
D) are consistent with the "random walk" hypothesis in finance, which states that the optimal
forecast of today's stock rate of return is yesterday's actual rate of return.
E) All of the options are correct.
Answer: E
Difficulty: 1 Easy
Topic: A Simple Naive Forecasting Model
Learning Objective: 1-07 Describe the naive forecasting method.
Accessibility: Keyboard Navigation
Gradable: automatic
(Test Bank all Chapters)
Forecasting and Predictive Analytics with Forecast X, 7e (Keating)
Chapter 1 Introduction to Business Forecasting and Predictive Analytics
1) Which of the following does not require sophisticated quantitative forecasts?
A) Accounting revenue forecasts for tax purposes.
B) Money managers use of interest rate forecasts for asset allocation decisions.
C) Managers of power plants using weather forecasts in forecasting power demand.
D) State highway planners require peak load forecasts for planning purposes.
E) All of the options require sophisticated quantitative forecasts.
Answer: E
Difficulty: 1 Easy
Topic: Forecasting in Business Today
Learning Objective: 1-03 Distinguish between qualitative and quantitative forecasting.
Accessibility: Keyboard Navigation
Gradable: automatic
2) Under what circumstances may it make sense not to prepare a business forecast?
A) No data is readily available.
B) The future will be no different from the past.
C) The forecast horizon is 40 years.
D) There is no consensus among informed individuals.
E) The industry to forecast is undergoing dramatic change.
Answer: B
Difficulty: 1 Easy
Topic: Forecasting and Supply Chain Management
Learning Objective: 1-05 Explain how forecasting relates to supply chain efficiency.
Accessibility: Keyboard Navigation
Gradable: automatic
3) What is most likely to be the major difference between forecasting sales of a private business
versus forecasting the demand of a public good supplied by a governmental agency?
A) Amount of data available
B) Underlying economic relationships
C) Lack of market-determined price data for public goods
D) Last of historical data
E) Lack of quantitative ability by government forecasters
Answer: C
Difficulty: 1 Easy
Topic: Forecasting in The Public and Not-For-Profit Sectors
Learning Objective: 1-03 Distinguish between qualitative and quantitative forecasting.
Accessibility: Keyboard Navigation
Gradable: automatic
,4) Which of the following points about supply chain management is incorrect?
A) Forecasts are required at each step in the supply chain.
B) Forecasts of sales are required for partners in the supply chain.
C) Collaborative forecasting systems across the supply chain are needed.
D) If you get the forecast right, you have the potential to get everything else right in the supply
chain.
E) None of the options are incorrect.
Answer: E
Difficulty: 1 Easy
Topic: Forecasting and Supply Chain Management
Learning Objective: 1-05 Explain how forecasting relates to supply chain efficiency.
Accessibility: Keyboard Navigation
Gradable: automatic
5) Which of the following is not typically part of the traditional forecasting textbook?
A) Classical statistics applied to business forecasting
B) Use of computationally intensive forecasting techniques
C) Attention to simplifying assumptions about the data
D) Discussion of probability distributions
E) Attention to statistical inference
Answer: B
Difficulty: 2 Medium
Topic: Forecasting in Business Today
Learning Objective: 1-03 Distinguish between qualitative and quantitative forecasting.
Accessibility: Keyboard Navigation
Gradable: automatic
6) Which subjective forecasting method depends upon the anonymous opinion of a panel of
individuals to generate sales forecasts?
A) Sales Force Composites
B) Customer Surveys
C) Jury of Executive Opinion
D) Delphi Method
E) None of the options are correct.
Answer: D
Difficulty: 1 Easy
Topic: The Delphi Method
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
,7) Which subjective sales forecasting method may have the most information about the spending
plans of customers for a specific firm?
A) Sales Force Composites
B) Index of consumer sentiment
C) Jury of Executive Opinion
D) Delphi Method
E) None of the options are correct.
Answer: A
Difficulty: 1 Easy
Topic: Sales Force Composites
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
8) Which subjective sales forecasting technique may have problems with individuals who have a
dominant personality?
A) Sales Force Composites
B) Customer Surveys
C) Jury of Executive Opinion
D) Delphi Method
E) None of the options are correct.
Answer: C
Difficulty: 1 Easy
Topic: Jury of Executive Opinion
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
9) Which of the following methods is not useful for forecasting sales of a new product?
A) Time series techniques requiring lots of historical data
B) Delphi Method
C) Consumer Surveys
D) Test market results
E) All of the options are correct.
Answer: A
Difficulty: 1 Easy
Topic: New Product Forecasting
Learning Objective: 1-06 Discuss forecasting for new products.
Accessibility: Keyboard Navigation
Gradable: automatic
, 10) Which of the following is not considered a subjective forecasting method?
A) Sales force composites
B) Naïve methods
C) Delphi methods
D) Juries of executive opinion
E) Consumer surveys
Answer: B
Difficulty: 1 Easy
Topic: Qualitative or Subjective Forecasting Methods
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
11) Which of the following is not an argument for the use of subjective forecasting models?
A) They are easy for management to understand
B) They are quite useful for long-range forecasts
C) They provide valuable information that may not be present in quantitative models
D) They are useful when data for using quantitative models is extremely limited
E) None of the options are correct.
Answer: E
Difficulty: 1 Easy
Topic: Qualitative or Subjective Forecasting Methods
Learning Objective: 1-04 Discuss four types of qualitative forecast methods.
Accessibility: Keyboard Navigation
Gradable: automatic
12) Forecasts based solely on the most recent observation of the variable of interest
A) are called "naïve" forecasts.
B) are the simplest of all quantitative forecasting methods.
C) lead to loss of one data point in the forecast series relative to the original series.
D) are consistent with the "random walk" hypothesis in finance, which states that the optimal
forecast of today's stock rate of return is yesterday's actual rate of return.
E) All of the options are correct.
Answer: E
Difficulty: 1 Easy
Topic: A Simple Naive Forecasting Model
Learning Objective: 1-07 Describe the naive forecasting method.
Accessibility: Keyboard Navigation
Gradable: automatic
