Forecasting Techniques and Moving Averages

The video tutorial covers various techniques for forecasting demand, including the naive approach, moving average, and weighted moving average. Each method is explained with examples, highlighting their reliance on past data to predict future demand. The tutorial also introduces the concept of error in forecasting and sets the stage for discussing exponential smoothing in the next lecture.

Which of the following is NOT one of the four major forecasting techniques discussed?

• Regression Analysis

• Moving Average

• Naive Approach

• Exponential Smoothing

What is the primary basis for the Naive Approach in forecasting?

• Using the previous year's demand

• Using complex algorithms

• Relying on expert opinions

• Considering market trends

In the context of forecasting, what does 'error' refer to?

• The difference between actual and forecasted demand

• A deviation from market trends

• A mistake in data entry

• A calculation mistake

What is a key characteristic of the Moving Average technique?

• It relies on expert opinions

• It predicts demand based on market trends

• It averages multiple past data points

• It uses a single data point

How many previous data points are needed for a Two-Month Moving Average?

• Four

• Three

• Two

• One

What is the forecasted demand for the third month using a Two-Month Moving Average if the demands for the first two months are 10 and 12?

• 13

• 12

• 11

• 10

For a Three-Month Moving Average, how many previous data points are required?

• Four

• Three

• Two

• One

What is the forecasted demand for the fourth month using a Three-Month Moving Average if the demands for the first three months are 10, 12, and 13?

• 13.00

• 14.00

• 12.33

• 11.67

In a Weighted Moving Average, what determines the weight assigned to past data points?

• The age of the data point

• The importance of the data point

• The size of the data point

• The source of the data point

If using a scale of 0 to 6, what is the sum of weights for a Weighted Moving Average?

• 3

• 6

• 9

• 12