 Which of the following is a potential shortcoming of using sales force opinions in

demand forecasting?
Members of the sales force can have difficulty distinguishing between what
customers would like to do and what they actually will do.
 When choosing a forecasting technique, a critical trade-off that must be considered is
that between:
- Cost and accuracy.
 The novel a new product or service design is, the more forecasters have to rely on:
- Subjective estimates.
 Forecasts based on judgment and opinion do not include
- Second opinion.
 Which of the following is/are a primary input into capacity, sales, and production
planning?
- Demand forecast.
 Which of the following features would not generally be considered common to all
forecasts?
- Historical data is available on which to base the forecast.
 Which of the following is not a step in the forecasting process?
- Eliminate all assumptions.
 Minimizing the sum of the squared deviations around the line is called:
- Least squares estimation.
 The two general approaches to forecasting are:
- Qualitative and quantitative.
 Which of the following is not a type of judgmental forecasting
- Time series analysis.
 Which of the following would be an advantage of using a sales force composite to
develop a demand forecast?
- The sales staff is often aware of customer’s future plans.
 Which phrase most closely describes the Delphi technique?
- Series of questionnaires.
 The forecasting method which uses anonymous questionnaire to achieve a consensus
forecast is?
- The Delphi method.
 One reason for using Delphi method in forecasting is to:
- Reduce the risk that one individual’s opinion will prevail.
 Gradual, long-term movement in time series data is called:
- Trend.
 The primary difference between seasonality and cycle is:
 - The duration of the repeating patterns.
 Averaging technique are useful for:
- Smoothing out functions in time series.
 Using the latest observation in a sequence of data to forecast the next period is:
- A naïve forecast.
 Moving average forecasting techniques do the following:
- Smooth variation in the data.
 Which is not a characteristic of simple moving averages applied to time series data?
- Requires only last period’s forecast and actual date.