A naïve forecast for September sales of a product would be equal to the forecast for August.

1) A naïve forecast for September sales of a product would be equal to the forecast for August.

Answer:  FALSE

Diff: 2

Topic:  Time-series forecasting

Objective:  LO4-3

2) The forecasting time horizon and the forecasting techniques used tend to vary over the life cycle of a product.

Answer:  TRUE

Diff: 2

Topic:  What is forecasting?

Objective:  LO4-1

3) Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning.

Answer:  TRUE

Diff: 2

Topic:  Types of forecasts

Objective:  LO4-1

4) Forecasts of individual products tend to be more accurate than forecasts of product families.

Answer:  FALSE

Diff: 2

Topic:  Seven steps in the forecasting system

Objective:  LO4-1

5) Most forecasting techniques assume that there is some underlying stability in the system.

Answer:  TRUE

Diff: 2

Topic:  Seven steps in the forecasting system

Objective:  LO4-1

6) The sales force composite forecasting method relies on salespersons' estimates of expected sales.

Answer:  TRUE

Diff: 1

Topic:  Forecasting approaches

Objective:  LO4-2

7) A time-series model uses a series of past data points to make the forecast.

Answer:  TRUE

Diff: 2

Topic:  Forecasting approaches

Objective:  LO4-2

8) The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.

Answer:  TRUE

Diff: 1

Topic:  Forecasting approaches

Objective:  LO4-2

9) Cycles and random variations are both components of time series.

Answer:  TRUE

Diff: 1

Topic:  Time-series forecasting

Objective:  LO4-3

10) A naive forecast for September sales of a product would be equal to the sales in August.

Answer:  TRUE

Diff: 1

Topic:  Time-series forecasting

Objective:  LO4-3

11) One advantage of exponential smoothing is the limited amount of record keeping involved.

Answer:  TRUE

Diff: 2

Topic:  Time-series forecasting

Objective:  LO4-3

12) The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand.

Answer:  FALSE

Diff: 2

Topic:  Time-series forecasting

Objective:  LO4-3

13) Mean Squared Error and Coefficient of Correlation are two measures of the overall error of a forecasting model.

Answer:  FALSE

Diff: 1

Topic:  Time-series forecasting

Objective:  LO4-4

14) In trend projection, the trend component is the slope of the regression equation.

Answer:  TRUE

Diff: 1

Topic:  Time-series forecasting

Objective:  LO4-3

15) In trend projection, a negative regression slope is mathematically impossible.

Answer:  FALSE

Diff: 2

Topic:  Time-series forecasting

Objective:  LO4-3

16) Seasonal indices adjust raw data for patterns that repeat at regular time intervals.

Answer:  TRUE

Diff: 2

Topic:  Time-series forecasting

Objective:  LO4-5

17) The best way to forecast a business cycle is by finding a leading variable.

Answer:  TRUE

Diff: 2

Topic:  Time-series forecasting

Objective:  LO4-3

18) Linear-regression analysis is a straight-line mathematical model to describe the functional relationships between independent and dependent variables.

Answer:  TRUE

Diff: 1

Topic:  Associative forecasting methods: Regression and correlation analysis

Objective:  LO4-6

19) The larger the standard error of the estimate, the more accurate the forecasting model.

Answer:  FALSE

Diff: 1

Topic:  Associative forecasting methods: Regression and correlation analysis

Objective:  LO4-4

20) A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y for every unit of time that passes.

Answer:  TRUE

Diff: 2

Topic:  Time-series forecasting: Trend projections

Objective:  LO4-6