IMM 8 EXAM QUESTIONS WITH ALL CORRECT ANSWERS
Which of the following statements is true regarding forecasting techniques?
A) Techniques that use external economic indicators are classified as extrinsic.
B) Intrinsic techniques use historical data.
C) Qualitative techniques are based on judgme...
IMM 8 EXAM QUESTIONS WITH
ALL CORRECT ANSWERS
Which of the following statements is true regarding forecasting techniques?
A) Techniques that use external economic indicators are classified as extrinsic.
B) Intrinsic techniques use historical data.
C) Qualitative techniques are based on judgment.
D) All of the above are true.
E) None of the above is true. - Answer- D) All of the above are true.
What important assumption is made about statistical (quantitative) forecasting
methods?
A) The past is a valid indicator of the future.
B) Demand trend is seldom linear.
C) Random variations are small.
D) Seasonal variations are small.
E) all of the above - Answer- A) The past is a valid indicator of the future.
Which of the following methods can be used to forecast the demand for a NEW
product?
A) qualitative techniques
B) equation fitting
C) moving averages
D) all of the above
E) none of the above - Answer- A) qualitative techniques
A forecasting technique that takes the average demand for some past number of
periods is called: - Answer- A) moving average.
B) exponential smoothing.
C) trend time analysis.
D) none of the above
E) all of the above
Demand over the past three months has been 700, 750, and 900. Using a three-month
moving average, what is the forecast for month four?
A) 822
B) 750
C) 783
D) 900
E) 700 - Answer- C) 783
, The old forecast was for 200 units and last month's sales were 225 units. If (alpha) is
0.2, what
is the forecast for next month?
A) 200
B) 212 1/2
C) 205
D) 210
E) 225 - Answer- C) 205
Which of the following statements is true?
A) The seasonal index is an estimate of how much the demand during the season will
be above or below the average demand.
B) Demand fluctuations that depend on the time of the year, week or day are called
seasonality.
C) Seasonality ALWAYS occurs in summer, winter, spring and fall.
D) A and B are true.
E) B and C are true - Answer- D) A and B are true.
If the average quarterly demand is 200 units and the first quarter demand is 350 units,
what is the seasonal index for the quarter?
A) .57
B) 350
C) 200
D) 1.75
E) none of the above - Answer- D) 1.75
Which of the following statements is true?
A) Seasonalize the base forecast to predict actual demand for future periods.
B) Deseasonalized data should be used for forecasting.
C) Actual sales should only be compared on a month-to-month basis.
D) A and B are true.
E) B and C are true. - Answer- D) A and B are true.
If the February demand for a product is 5,000 units and the seasonal index for February
is 0.75, what is the Deseasonalized February demand?
A) 10,000
B) 3,750
C) 15,000
D) 8,750
E) 6,667 - Answer- E) 6,667
Forecast error will be caused by:
A) random variation from the average demand.
B) errors in forecasting average demand.
C) differences in lead times.
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