Forecasting and Decision Support Systems

The video tutorial covers the process of generating forecasts for a corporation's performance over five years using a decision support system (DSS) in spreadsheets. It discusses identifying data sources for sales and cost records, understanding external variables like inflation and tax rates, and incorporating user inputs. The tutorial also guides on designing a spreadsheet to predict post-tax profits, emphasizing the importance of inputs, outputs, and calculations for accurate forecasting.

What is the primary goal of using a decision support system (DSS) in forecasting?

• To automate all business processes

• To reduce the number of employees needed

• To eliminate the need for human decision-making

• To generate accurate predictions of future performance

Where would a company most likely store its past sales records?

• In a marketing database

• In a sales database

• In a cloud storage service

• In a physical filing cabinet

Which organization is responsible for defining inflation rates in Australia?

• Australian Bureau of Statistics

• Australian Taxation Office

• Department of Finance

• Reserve Bank of Australia

What is the role of the Australian Taxation Office in the context of forecasting?

• Managing company databases

• Defining tax rates

• Predicting market trends

• Setting interest rates

How can users influence the predictions made by a decision support system?

• By adjusting forecast inputs

• By changing the system's code

• By consulting external experts

• By altering historical data

What are the three cost categories mentioned in the context of forecasting?

• Marketing, Sales, Production

• Goods, Administration, Marketing

• Production, Administration, Sales

• Goods, Services, Marketing

What is the significance of using percentages in forecasting inputs?

• They are easier to understand

• They simplify calculations

• They provide a relative measure

• They are required by law

Why is it important to have separate columns for each year in a multi-year forecast?

• To make the spreadsheet visually appealing

• To comply with financial regulations

• To reduce the complexity of the spreadsheet

• To ensure distinct predictions for each year

What is a growth prediction in the context of forecasting?

• An estimate of future inflation rates

• An analysis of past sales data

• A prediction of tax rate changes

• A forecast of sales increase or decrease

Which of the following is NOT an input in the spreadsheet design for forecasting?

• Tax rates

• Inflation rates

• User's favorite color

• Cost percentages