MANAGEMENT FINAL SAMPLE MULTIPLE CHOICE
QUESTIONS AND ANSWERS
The first step in forecasting is:
a. Determine what data is available
b. Decide what to forecast
c. Evaluate and analyze appropriate data
d. Select and test the forecast model
e. Establish the forecast accuracy requirements - Answers - b. Decide What to Forecast
Qualitative Forecasting methods:
a. Are made objectively by the forecaster
b. Are made subjectively by the forecaster
c. Are made using existing data sources
d. Are based on mathematical models
e. Are only used in parallel with quantitative methods - Answers - b. Are made
subjectively by the forecaster
Under which forecasting method does a group of managers meet to generate a
forecast?
a. Market Research
b. Executive Opinion
c. Delphi Model
d. Naive Method
e. Gamma Method - Answers - b. Executive Opinion
What are the two categories of quantitative models?
a. Delphi and non causal
b. Causal and non-causal
c. Delphi and time series
d. Causal and time series
e. Causal and delphi - Answers - d. Causal and Time Series
Which of the following is a causal forecasting method?
a. Naive
b. Moving Average
c. Weighted Moving Average
d. Trend Adjusted Exponential Smoothing
e. Linear Regression - Answers - e. Linear Regression
Which of the following is the least useful sales forecasting model to use when sales are
increasing?
a. Trend adjusted exponential smoothing
b. Simple Mean
, c. Exponential Smoothing
d. Weighted Moving Average
e. Naive - Answers - b. Simple Mean
Which is typically the most difficult data pattern to predict? - Answers - e. Cycle
Over the long term, which of the following forecasting models will likely require carrying
the least amount of data?
a. Naive
b. Simple Mean
c. Exponential Smoothing
d. Weighted Moving Average
e. Moving Average - Answers - a. Naive
What are the most frequently used forecasting techniques?
a. Linear Regression
b. Simple Mean
c. Exponential Smoothing
d. Weighted Moving Average
e. Econometric Models - Answers - c. Exponential Smoothing
Which of the following forecasting models would be most accurate if demand were
rapidly decreasing?
a. 3 month moving average
b. 6 month moving average
c. 12 month moving average
d. Simple Mean - Answers - a. 3 month moving average
What are purchased items or extracted materials that will be transformed in to
components or products called?
a. Raw Materials Inventory
b. Finished Goods Inventory
c. Work in Process Inventory
d. Distribution Inventory
e. MRO Inventory - Answers - a. Raw Materials Inventory
Hand tools, lubricants, and cleaning supplies are usually examples of what?
a. WIP Inventory
b. Finished Goods Inventory
c. Raw Materials Inventory
d. MRO Inventory
e. Distribution Inventory - Answers - d MRO Inventory
Which is the primary inventory function that is activated after coupons are distributed to
customers?
a. Anticipation inventory
QUESTIONS AND ANSWERS
The first step in forecasting is:
a. Determine what data is available
b. Decide what to forecast
c. Evaluate and analyze appropriate data
d. Select and test the forecast model
e. Establish the forecast accuracy requirements - Answers - b. Decide What to Forecast
Qualitative Forecasting methods:
a. Are made objectively by the forecaster
b. Are made subjectively by the forecaster
c. Are made using existing data sources
d. Are based on mathematical models
e. Are only used in parallel with quantitative methods - Answers - b. Are made
subjectively by the forecaster
Under which forecasting method does a group of managers meet to generate a
forecast?
a. Market Research
b. Executive Opinion
c. Delphi Model
d. Naive Method
e. Gamma Method - Answers - b. Executive Opinion
What are the two categories of quantitative models?
a. Delphi and non causal
b. Causal and non-causal
c. Delphi and time series
d. Causal and time series
e. Causal and delphi - Answers - d. Causal and Time Series
Which of the following is a causal forecasting method?
a. Naive
b. Moving Average
c. Weighted Moving Average
d. Trend Adjusted Exponential Smoothing
e. Linear Regression - Answers - e. Linear Regression
Which of the following is the least useful sales forecasting model to use when sales are
increasing?
a. Trend adjusted exponential smoothing
b. Simple Mean
, c. Exponential Smoothing
d. Weighted Moving Average
e. Naive - Answers - b. Simple Mean
Which is typically the most difficult data pattern to predict? - Answers - e. Cycle
Over the long term, which of the following forecasting models will likely require carrying
the least amount of data?
a. Naive
b. Simple Mean
c. Exponential Smoothing
d. Weighted Moving Average
e. Moving Average - Answers - a. Naive
What are the most frequently used forecasting techniques?
a. Linear Regression
b. Simple Mean
c. Exponential Smoothing
d. Weighted Moving Average
e. Econometric Models - Answers - c. Exponential Smoothing
Which of the following forecasting models would be most accurate if demand were
rapidly decreasing?
a. 3 month moving average
b. 6 month moving average
c. 12 month moving average
d. Simple Mean - Answers - a. 3 month moving average
What are purchased items or extracted materials that will be transformed in to
components or products called?
a. Raw Materials Inventory
b. Finished Goods Inventory
c. Work in Process Inventory
d. Distribution Inventory
e. MRO Inventory - Answers - a. Raw Materials Inventory
Hand tools, lubricants, and cleaning supplies are usually examples of what?
a. WIP Inventory
b. Finished Goods Inventory
c. Raw Materials Inventory
d. MRO Inventory
e. Distribution Inventory - Answers - d MRO Inventory
Which is the primary inventory function that is activated after coupons are distributed to
customers?
a. Anticipation inventory
