Question

WK 5

Goodness-of-fit tests are useful in allowing us to test the validity of the assumption under varying conditions.

True or False?

Forecasting is the process of estimating future outcomes.

True or False?

Judgmental or qualitative methods are based on historical patterns in data and use time as an independent variable to estimate demand.

True or False?

Moving average forecasting involves selecting factors to define how quickly (or how slowly) a forecast responds to changes in demand data.

True or False?

The further into the future the forecast projects, the less accurate it is likely to be.

True or False?

Time-series methods use cause-and-effect logic to describe the behavior of a system in response to one or more factors.

True or False?

Causal models make forecasts based on historical patterns in data and use time as an independent variable to estimate demand.

True or False?

Customer surveys identify factors that enhance relationships and brand perceptions, increase loyalty, and increase sales.

True or False?

The popularity of time series analysis is due to the fact that it requires limited data for analysis—outcome data captured across time.

True or False?

It is never a concern how far back in time one should go in determining the data to use for a historical forecast.

True or False?

Answer 1

Q.1. True as different tests are based on different assumptions
Q.2. True.
Q.3. False. Qualitative methods includes consumer surveys, executive surveys, opinions which are based on cross sectional data
Q.4. True. As a 3 period moving average moves more slowly to demand changes than does a 5 period moving average
Q.5. True, As other external factors may affect the accuracy of forecast
Q.6. True
Q.7. True
Q.8. True
Q.9. False. It needs huge volume of data as time series would be of daily, weekly and monthly transaction data to understand seasonality, trend
Q.10. True