FINNIKIN QM Quiz - Forecasting # 2

What is the forecast for May using a four-month moving average?

• 38

• 42

• 43

• 44

The two general approaches to forecasting are:

• qualitative and quantitative.

• mathematical and statistical.

• judgmental and qualitative.

• historical and associative

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 3000 pancakes in May, 2200 pancakes in June, and 1000 pancakes in July, what should be the forecast for August?

• 1622

• 2400

• 2511

• 3767

Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of .6, what is the exponential smoothing forecast for next period?

• 96.6

• 97.4

• 100.6

• 101.4

Given an actual demand this period of 67, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing?

• 55.3

• 57.1

• 60.7

• 61.0

Given forecast errors of -1, 4, 4, and -3, what is the mean absolute deviation?

• 1

• 2

• 3

• 4

• 12

Suppose that the last four months of sales were 8, 10, 15, and 9 units, respectively. Suppose further that the last four forecasts were 5, 6, 11, and 12 units, respectively. What is the Mean Absolute Deviation (MAD) of these forecasts?

• 3.5

• 2

• -10

• 9

________ is a measure of the strength of the relationship between independent variable(s) and a dependent variable.

• Correlation

• Linear regression

• Coefficient of determination

• Regression

Given forecast errors of 6, 4, 0 and -2, what is the mean absolute deviation?

• 2

• 3

• 4

• 2.67

Daily highs in Sacramento for the past week (from least to most recent) were: 95, 102, 101, 96, 95, 98 and 92. Develop a forecast for today using a 2-day moving average.