ISDS 3115 Exam 1 – practice exam questions with answers and foundational
revision material
measure forecast accuracy - correct answer ✔✔The primary purpose of the mean absolute
deviation (MAD) in forecasting is to
demand forecast - correct answer ✔✔A forecast that projects a company's sales is a(n):
3.5 - correct answer ✔✔The last four months of sales were 8, 10, 15, and 9 units. The last four
forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is:
Bias - correct answer ✔✔The last four weekly values of sales were 80, 100, 105, and 90 units.
The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate:
1 - correct answer ✔✔Which of the following smoothing constants would make an exponential
smoothing forecast equivalent to a naïve forecast?
Short-range, medium-range, and long-range - correct answer ✔✔Forecasts are usually classified
into three categories including:
It is based on the assumption that the analysis of past demand helps predict future demand. -
correct answer ✔✔Which of the following statements about time-series forecasting is true?
long-range time horizon - correct answer ✔✔Forecasts used for new product planning, capital
expenditures, facility location or expansion, and R&D typically utilize a__________
The Delphi method - correct answer ✔✔Which of the following uses three types of participants:
decision makers, staff personnel, and respondents?
, 63.8 - correct answer ✔✔Given last periods forecast of 65, and last periods demand of 62, what
is the simple exponential smoothing forecast with an alpha of .4 for the next period?
100.6 - correct answer ✔✔Given an actual demand of 103, a previous forecast value of 99, and
an alpha of .4, the exponential smoothing forecast for the next period would be:
0.684 - correct answer ✔✔A seasonal index for a monthly series is about to be calculated on
the basis of three years' accumulation of data. The three previous July values were 110, 150,
and 130. The average over all months is 190. The approximate seasonal index for July is:
4 - correct answer ✔✔Given forecast errors of -1, 4, 8, and -3, what is the mean absolute
deviation?
44 - correct answer ✔✔Given the following data about monthly demand, what is the
approximate forecast for May using a four month moving average?
November = 39
December = 36
January = 40
February = 42
March = 48
April = 46
ratio of cumulative error/MAD - correct answer ✔✔The tracking signal is the:
is an indication that product demand is declining - correct answer ✔✔For a given product
demand, the time-series trend equation is 53 - 4X. The negative sign on the slope of the
equation:
revision material
measure forecast accuracy - correct answer ✔✔The primary purpose of the mean absolute
deviation (MAD) in forecasting is to
demand forecast - correct answer ✔✔A forecast that projects a company's sales is a(n):
3.5 - correct answer ✔✔The last four months of sales were 8, 10, 15, and 9 units. The last four
forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is:
Bias - correct answer ✔✔The last four weekly values of sales were 80, 100, 105, and 90 units.
The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate:
1 - correct answer ✔✔Which of the following smoothing constants would make an exponential
smoothing forecast equivalent to a naïve forecast?
Short-range, medium-range, and long-range - correct answer ✔✔Forecasts are usually classified
into three categories including:
It is based on the assumption that the analysis of past demand helps predict future demand. -
correct answer ✔✔Which of the following statements about time-series forecasting is true?
long-range time horizon - correct answer ✔✔Forecasts used for new product planning, capital
expenditures, facility location or expansion, and R&D typically utilize a__________
The Delphi method - correct answer ✔✔Which of the following uses three types of participants:
decision makers, staff personnel, and respondents?
, 63.8 - correct answer ✔✔Given last periods forecast of 65, and last periods demand of 62, what
is the simple exponential smoothing forecast with an alpha of .4 for the next period?
100.6 - correct answer ✔✔Given an actual demand of 103, a previous forecast value of 99, and
an alpha of .4, the exponential smoothing forecast for the next period would be:
0.684 - correct answer ✔✔A seasonal index for a monthly series is about to be calculated on
the basis of three years' accumulation of data. The three previous July values were 110, 150,
and 130. The average over all months is 190. The approximate seasonal index for July is:
4 - correct answer ✔✔Given forecast errors of -1, 4, 8, and -3, what is the mean absolute
deviation?
44 - correct answer ✔✔Given the following data about monthly demand, what is the
approximate forecast for May using a four month moving average?
November = 39
December = 36
January = 40
February = 42
March = 48
April = 46
ratio of cumulative error/MAD - correct answer ✔✔The tracking signal is the:
is an indication that product demand is declining - correct answer ✔✔For a given product
demand, the time-series trend equation is 53 - 4X. The negative sign on the slope of the
equation:
