Brs Mdm3 Tif Ch11

Managerial Decision Modeling w/ Spreadsheets, 3e (Balakrishnan/Render/Stair)
Chapter 11 Forecasting Models

11.1 Chapter Questions

1) Consider the following data that was fitted using a Linear Trend.

Period
Actual value (or) Y
Period number (or) X
Period 1
10
1
Period 2
11
2
Period 3
9
3
Period 4
12
4
Period 5
13
5
Period 6
12
6
Period 7
15
7 The intercept of the trend line is 8.714, and the slope is 0.75. What is the forecast for period 8?
A) 13.714
B) 14.714
C) 15.714
D) 16.714
E) 15.75
Answer: B
Page Ref: 495
Topic: Trend and Seasonality in Time-Series Data
Difficulty: Moderate
AACSB: Analytic Skills

2) Which of the following is considered to be a category of forecasting models?
A) Qualitative
B) Time-series
C) Causal models
D) both A and B
E) A, B, and C
Answer: E
Page Ref: 476
Topic: Types of Forecasts
Difficulty: Easy
3) Which of the following is NOT a qualitative method of forecasting?
A) Delphi Method
B) Trend Analysis
C) Jury of Executive Opinion
D) Sales Force Composition
E) Consumer Market Survey
Answer: B
Page Ref: 477
Topic: Types of Forecasts
Difficulty: Easy

4) Which of the following is NOT considered to be a Time-Series method of forecasting?
A) Simple Linear Regression
B) Moving Average
C) Exponential Smoothing
D) Seasonality Analysis
E) Multiplicative/Additive Decomposition
Answer: A
Page Ref: 477
Topic: Types of Forecasts
Difficulty: Moderate

5) An iterative group process that allows experts, who may be located in different places, to make forecasts is referred to as ________.
A) a jury of executive opinion
B) a sales force composite
C) ca onsumer market survey
D) the Delphi method
E) trend analysis
Answer: D
Page Ref: 477
Topic: Qualitative Forecasting Models
Difficulty: Moderate
6) Consider the following data that was fitted using a linear trend. Period
Actual value (or) Y
Period number (or) X
Period 1
10
1
Period 2
11
2
Period 3
9
3
Period 4
12
4
Period 5
13
5
Period 6
12
6
Period 7
15
7

The intercept of the