1. Brand Development Index for a given area is 1.2.

It means that in this particular area:

a) Company has a 20% higher market share than the closest competitor

b) Requires a 20% increase in advertising, to develop the brand

c) Requires a 20% share of voice to maintain the market share

d) Brings in 20% higher sales than an average sales area of the company

e) The ratio of sales over the rate of growth is 1.2

4. (Classical Decomposition Method) lead(s) to better understanding of:

a) Duration of the business cycles

b) Impact of economic downturns and upswing on companys business

c) Interaction between cyclicality and seasonality, in affecting the companys business

d) All of the above

e) a) and b) only

5. De-seasonalizing the data, prior to performing a linear regression, has the following

advantages:

a) Increased R2

b) More reliable forecasts

c) No need to aggregate the data to annual levels in order to hide seasonality

d) All of the above

e) None of the above

6. An analyst has arranged sales data for a period of a few years by month. S/he has computed

average sales figure for each month, then, divided each months average sales by the overall

monthly average. The resulting twelve ratios are measures of:

a) Seasonality

b) Cyclicality

c) Secular Trend

d) Random component

e) All of the above

7. The forecasting method which assumes that nothing is going to change and the best estimate

for the future sales is the current level of sales is known as:

a) Naive forecasting

b) Chain-ratio method

c) Regression point estimation

d) Exponential smoothing

e) Moving averages

8. What is common to the Moving Averages and Exponential Smoothing techniques:

a) Both are based on the assumption that, to a great degree, the factors operating in the past

will continue to operate in the future

b) The more recent observations contain more pertinent information for forecasting the

future.

c) Every observation made, contains a true value and a random component.

d) All of the above

e) None of the above

9. When historic data seems to have no apparent trend and a lot of variation, the Moving

Averages and Exponential Smoothing will need to be based on relatively:

a) Large N and small (alpha), respectively

b) Large N and large (alpha), respectively

c) Small N and large (alpha), respectively

d) Small N and small (alpha), respectively

e) Large N and average (0.5) (alpha), respectively

11. In Exponential Smoothing, is a factor used to adjust the forecasting error of the previous

period. Then, this adjustment is added to the most recent observation, in order to arrive at the

future period forecast:

a) True

b) False

12. When data shows a consistent and rising trend, the use of Moving Averages will result in

under forecasting future values.

a) True

b) False (Over forecasting will be the norm)

15. Seasonality Indexes are used for the following:

a) De-seasonalize data, i.e. remove the impact of the "season"

b) Allocate sales force effort to the periods used in computing the seasonal indexes

c) Produce a more reliable estimate of the cyclical residuals

d) All of the above

e) a. and b. only