6) What is TRUE about quantitative forecasting models?

a.They are based on judgments.

b.They are often biased.

c. They are subjective.

d. They are only as good as the data on which they are based.

7) Economics indicates that the world economy fluctuates over the long term. What type of data pattern would this be?

a. Seasonal

b. Cyclical

c. Linear

d. Level

e. Horizontal

8) In exponential smoothing, which of the following values for would generate the MOST stable forecast?

a. 0.25

b. 0.10

c. 1.00

d. 0.50

e. 0.75

9) What is the simple average forecasting method?

a. It is a technique that uses the least-squares method to fit a straight line to past data over time.

b. It uses last periods actual value as a forecast.

c. It uses an average of past data as a forecast.

d. It is a weighted average procedure with weights declining exponentially as data become older.