1. A quantitative forecasting method that uses historical data on independent variables, such as promotional campaigns, economic conditions, and competitors actions, to predict demand.

causal methods

judgment methods

time-series analysis

Forecast error

aggregation

2.

If forecast errors are normally distributed with a mean of 0, the relationship between s and MAD is simple:

MAD = (/2)

MAD = 1.4

MAD = 0.7978

MAD = (/4)

3.

A _______ is a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand.

tracking signal

mean absolute deviation

Cumulative forecast error

holdout sample

4.

_________ is the actual demands from the more recent time periods in the time series that are set aside to test different models developed from the earlier time periods.

holdout sample

tracking signal

focus forecasting

combination forecast