Question

Part 1 : Which of the following is often used to forecast the market penetration of a new service?

	A.	Regression
	B.	Historical analogy
	C.	Cross-impact analysis
	D.	N-period moving average
	E.	Exponential smoothing with trend adjustment

Part 2: Which of the following types of forecasting models uses a specified number of recent observations to make a short-term forecast of demand?

	A.	Regression
	B.	Econometric
	C.	Moving average
	D.	Cross-impact analysis
	E.	Exponential smoothing

Part 3:

How does the moving average technique determine a next-period forecast?

	a.	By averaging a certain number of the most recent data to generate a forecast.
	b.	By calculating a weighted average of n-period observations using varied weights.
	c.	By identifying a causal variable, which is a predictor of demand, and using linear regression to identify the forecast equation.
	d.	By using the current period’s forecast, adjusted by a weighted difference between the current period’s actual data and the forecast.
	e.	By assuming that the introduction and growth pattern of a new service will mimic the pattern of a similar concept for which data are available.

Answer 1

1. e. Exponential smoothing with trend adjustment

In this case a smoothing constant along with a trend factor is used so that the forecast is done based on teh smoothing constant and also the trens that will give proper value of the forecast.

2. C. Moving average

In Moving average the recent forecasts for period are considered depending upon the type of forecats which can be 3 point moving average or 4 point moving average.

3. a. By averaging a certain number of the most recent data to generate a forecast.

As discussed that the recent data is used in this context to generate a forecast depending upon the type.