Choose the one alternative that best completes the statement or answers the question.

$1.$ Forecasts

a$)$ become more accurate with longer time horizons

b$)$ are rarely perfect

c$)$ are more accurate for individual items than for groups of items

d$)$ all of the above

e$)$ none of the above

$2.$ One use of short$-$range forecasts is to determine

a$)$ planning for new products

b$)$ capital expenditures

c$)$ research and development plans

d$)$ facility location

e$)$ job assignments

$3.$ Forecasts are usually classified by time horizon into three categories

a$)$ short$-$range, medium$-$range, and long$-$range

b$)$ finance$/$accounting$,$ marketing, and operations

c$)$ strategic, tactical, and operational

d$)$ exponential smoothing, regression, and time series

e$)$ departmental, organizational, and industrial

$4.$ A forecast with a time horizon of about $3$ months to $3$ years is typically called a

a$)$ long$-$range forecast

b$)$ medium$-$range forecast

c$)$ short$-$range forecast

d$)$ weather forecast

e$)$ strategic forecast

$5.$ Forecasts used for new product planning, capital expenditures, facility location or expansion, and

R&D typically utilize a

a$)$ short$-$range time horizon

b$)$ medium$-$range time horizon

c$)$ long$-$range time horizon

d$)$ naive method, because there is no data history

e$)$ all of the above

$6.$ Organizations use which three major types of forecasts, including two that may fall outside the role

of the operations manager?

a$)$ strategic, tactical, and operational

b$)$ economic, technological, and demand

c$)$ exponential smoothing, Delphi, and regression

d$)$ causal, time$-$series, and seasonal

e$)$ departmental, organizational, and territorial

$7.$ Which of the following is not a step in the forecasting process?

a$)$ Determine the use of the forecast.

b$)$ Eliminate any assumptions.

c$)$ Determine the time horizon.

d$)$ Select forecasting model.

e$)$ Validate and implement the results.

$8.$ The two general approaches to forecasting are

a$)$ qualitative and quantitative

b$)$ mathematical and statistical

Lecturer: JC Kabala $05$ March $2024$

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c$)$ judgmental and qualitative

d$)$ historical and associative

e$)$ judgmental and associative

$9.$ Which of the following uses three types of participants: decision makers, staff personnel, and

respondents?

a$)$ executive opinions

b$)$ sales force composites

c$)$ the Delphi method

d$)$ associative models

e$)$ time series analysis

$10.$ The forecasting model that pools the opinions of a group of experts or managers is known as the

a$)$ expert judgment model

b$)$ multiple regression model

c$)$ jury of executive opinion model

d$)$ consumer market survey model

e$)$ management coefficients model

$11.$ Which of the following is not a type of qualitative forecasting?

a$)$ executive opinions

b$)$ sales force composites

c$)$ consumer surveys

d$)$ the Delphi method

e$)$ moving average

$12.$ Which of the following statements about time$-$series forecasting is true?

a$)$ It is based on the assumption that future demand will be the same as past demand.

b$)$ It makes extensive use of the data collected in the qualitative approach.

c$)$ It is based on the assumption that the analysis of past demand helps predict future demand.

d$)$ Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than

associative forecasting.

e$)$ All of the above are true.

$13.$ Time$-$series data may exhibit which of the following behaviors?

a$)$ trend

b$)$ random variations

c$)$ seasonality

d$)$ cycles

e$)$ They may exhibit all of the above.

$14.$ Gradual movement in time$-$series data over time is called

a$)$ seasonal variation

b$)$ a cycle

c$)$ a trend

d$)$ exponential variation

e$)$ random variation

$15.$ Which of the following is not present in a time series?

a$)$ seasonality

b$)$ operational variations

c$)$ trend

d$)$ cycles

e$)$ random variations

$16.$ The fundamental difference between cycles and seasonality is the

a$)$ duration of the repeating patterns

b$)$ magnitude of the variation

c$)$ ability to attribute the pattern to a cause

d$)$ all of the above

e$)$ none of the above