Question: 1. The last-value forecasting method is most useful when conditions are stable over time. ( T / F ) 2. A moving-average forecast is responsive

1. The last-value forecasting method is most useful when conditions are stable over time. ( T / F )

2. A moving-average forecast is responsive to changes in the time-series data.

3. The forecasting method which uses grass-roots information to achieve a forecast is: a. sales force composites. b. consumer surveys. c. the Delphi method. d. time-series analysis. e. executive opinions. 4. Given forecast errors of 8, 4, and 9, what is the mean absolute deviation? a. 3. b. 4. c. 7. d. 6. e. 12. 5. Given an actual demand of 60, a previous forecast of 50, and an alpha of 0.7, what would be the forecast for the next period using the exponential smoothing method? a. 57. b. 61. c. 63. d. 65. e. 67. 6. MSE emphasizes smaller values of the errors? ( T / F ) 7. What do we mean by time series? 8. Assuming market conditions are the same, how do you use the MSE values to decide which forecasting method is better? 9. In exponential smoothing, an alpha of 0.3 will cause a forecast to react slower to market conditions than will an alpha of 0.7. (T / F )

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