Chapter 2 Forecasting

Quantitative methods of forecasting include

• jury of executive opinion

• sales force composite

• consumer market survey

• exponential smoothing

The forecasting model that is based upon salesperson's estimates of expected sales is

• consumer market survey

• sales force composite

• delphi method

• jury of executive opinion

In which of the following forecasting technique, subjective inputs obtained from various sources are analyzed ?

• Judgemental forecast

• Time series forecast

• Associative model

• All of the above

In which of the following forecasting technique, data obtained from past experience is analyzed?

• Judgemental forecast

• Time series forecast

• Associative model

• All of the above

Short term regular variations related to the calendar or time of day is known as

• Trend

• Seasonality

• Cycles

• Random variations

Which of these is a measure of forecast error ?

• Mean absolute deviation

• Trend value

• Moving average

• Price fluctuation

The value of α (smoothing constant) in exponential smoothing method is

• Between – 1 to + 1

• Between 0 to 1

• Between – 2 to + 2

• Can’t be defined

when using simple moving average to forecast demand one would

• give equal weight to all demand data

• assign more weight to the recent demand data

• include new demand data in average without discarding earlier data

• give equal weight to all demand data and also include new demand data in average after discarding some of the earlier data

Long term forecasting considers a period

• One year or less

• One to three year

• More than three years

• None of these

linear trend equation has the form

• y = a - bx

• y = a + bx

• y = 2a + bx

• y = 2a - bx