Forecasting Pop Quiz

Forecasts are rarely perfect.

• True

• False

When no historical sales data are available, it is best to use statistical forecasting methods.

• True

• False

The mean absolute deviation (MAD) is the sum of the absolute value of forecasting errors divided by the number of forecasts.

• True

• False

Tags

CCSS.6.SP.B.5C

Removing the seasonal component from a time-series can be accomplished by dividing each value by its appropriate seasonal factor.

• True

• False

The last-value forecasting method is most useful when conditions are stable over time.

• True

• False

Tags

CCSS.7.SP.A.2

A moving-average forecast tends to be more responsive to changes in the time-series data when more values are included in the average.

• True

• False

A smoothing constant of 0.1 will cause an exponential smoothing forecast to react more quickly to a sudden change than a value of 0.3 will.

• true

• false

The goal of time-series forecasting methods is to estimate the mean of the underlying probability distribution of the next value of the time-series as closely as possible.

• true

• false

Tags

CCSS.8.SP.A.3

Linear regression can be used to approximate the relationship between independent and dependent variables.

• true

• false

Tags

CCSS.8.SP.A.3

The sales force composite method is a top-down approach to forecasting.

• true

• false

Tags

CCSS.HSS.MD.A.3

CCSS.HSS.MD.A.4