Demand Forecasting Methods MCQs
Demand Forecasting Methods MCQs
The following Demand Forecasting Methods MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Demand Forecasting Methods. We encourage you to answer these multiple-choice questions to assess your proficiency.
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1: Which model is used to combine trends and seasonal components in which the seasonal indices are added to the projected trend?
A. Delivery safety
B. Order fill rate
C. Service recovery
D. Additive model
2: Which method is used for calculating seasonal indices in which moving averages for each season are centered
A. Centered moving average method
B. Coefficient of determination method
C. Correlation coefficient method
D. None of these
3: Define Coefficient of determination
A. Measures the strength of the relationship between two variables
B. Sum of the differences between the actual and the forecasted demand values
C. The proportion of variation explained by regression
D. Both b & c possible
4: Correlation coefficient value between _____ and _____
A. –∞ & +∞
B. 0 & +1
C. 1 & +∞
D. –1 & +1
5: The sum of the differences between the actual and the forecasted demand values is known as
A. Cumulative sum error
B. Correlation coefficient
C. Cyclical variations
D. Damped trend
6: wave-like oscillations in demand about the trend line caused by changes in economic or business cycles.This statement is best for
A. Cumulative sum error
B. Correlation coefficient
C. Cyclical variations
D. Damped trend
7: Damped trend is a pattern in which the level of demand ______ and levels off in the long term
A. Decreases initially
B. Increases initially
C. Both a & b
D. None of these
8: ______ is a qualitative method that attempts to eliminate or minimize the problem of bias in the opinion of a single expert by using a panel of experts to generate forecasts
A. Delphi method
B. Dependent method
C. Correlation method
D. Coefficient method
9: Demand for a part or component that depends on the demand for the end product is known as
A. Delphi method
B. Dependent demand
C. Correlation method
D. Coefficient method
10: In dependent or predicted variable is a variable that is affected by an independent or predictor variable
A. True
B. False
11: Define Error sum of squares
A. Measures the strength of the relationship between two variables
B. Sum of the differences between the actual and the forecasted demand values
C. A measure of the variation not explained by the regression model but resulting from other factors or variables
D. Both b & c possible
12: The intuition or the experienced judgment of experts is also called
A. Exponential growth
B. Expert opinion
C. Exponential smoothing
D. None of these
13: _______ is an examples of nonlinear trends
A. Exponential growth
B. Expert opinion
C. Exponential smoothing
D. None of these
14: Average of all previous observations that gives progressively less weight to older observations.This Statement is true for
A. Exponential growth
B. Expert opinion
C. Exponential smoothing
D. None of these
15: Which method is used to forecast demand for a new product or service that is similar to existing products.
A. Historical life-cycle analogy
B. Independent demand
C. Independent or predictor variable
D. Exponential growth
16: An item whose demand is unrelated to the demand of any other product or item is known as
A. Historical life-cycle analogy
B. Independent demand
C. Independent or predictor variable
D. Exponential growth
17: predictor variable is also known as
A. Independent variable
B. Independent demand
C. Independent or predictor variable
D. Exponential growth
18: Irregular variations caused by _______
A. Uncommon factors
B. Common factors
C. General factors
D. Specific factors
19: Number of unemployment insurance claims, inventory changes, and stock prices used to track cyclical fluctuations is known as
A. Leading indicators
B. Independent demand
C. Independent or predictor variable
D. Exponential growth
20: Why is the Least-squares method used ?
A. Draw the line of best fit in linear regression
B. Draw the line of best fit in Logistic Regression
C. Draw the line of best fit in Ridge Regression
D. All are Correct
21: Linear regression analysis models the relationship between _________ And __________
A. Dependent variable and one or more independent variables
B. Independent variable and one or more independent variables
C. Both a & b
D. None of these
22: Linear trend is a pattern in which demand _____ in successive periods
A. Either increases or decreases
B. Nor increases or decreases
C. Only increase
D. Only decrease
23: A method in which the seasonal indices are expressed as percentages and the combined forecast is expressed as percentage adjustments of the underlying linear trend is known as
A. Linear trend multiplicative method
B. Delphi method
C. Correlation method
D. Coefficient method
24: MAD stands for (in operational management)
A. Mutually Assured Destruction
B. Mean Absolute Deviation
C. Make A Difference
D. None of these
25: A measure of the absolute error as a percentage of the actual demand is known as
A. Mean absolute percentage error
B. Mean squared error
C. Mean squared error
D. Moving average
26: Mean squared error is the average of the sum of the squared differences between the actual and the forecasted demand values
A. True
B. False
27: Mean squared error is the ______ between the actual and the forecasted demand values
A. Sum of the differences
B. Sum of the squared differences
C. Divided of the squared differences
D. None of these
28: Moving average most recent demand periods are used to predict demand in the future period
A. True
B. False
29: Multiple linear regression is a technique that models the relationship between a dependent variable and _____
A. One independent variable
B. Two independent variables
C. Several independent variables
D. Some independent variables
30: Multiplicative model is a model of combining trends and _______
A. Functional components
B. Class components
C. Seasonal components
D. None of these
31: ______ is a forecasting method in which it is assumed that the demand in the next period will be the same as it is in the current period
A. Naïve approach
B. Nonlinear trend
C. Qualitative method
D. None of these
32: A pattern in which demand either increases or decreases irregularly is known as
A. Naïve approach
B. Nonlinear trend
C. Qualitative method
D. None of these
33: A forecasting method based on intuition, judgment, or informed opinions of experts in the industry, used if no measurable, reliable, historical, or statistical data are available is known as
A. Naïve approach
B. Nonlinear trend
C. Qualitative method
D. None of these
34: Quantitative method is a forecasting method based on measurable, historical data and evidence
A. True
B. False
35: A measure of the difference between the mean Y and the predicted or computed value of Y using regression is known as
A. Regression sum of squares
B. Naïve approach
C. Nonlinear trend
D. Qualitative method
36: Seasonal indices is a factors that capture the seasonal contribution to demand in each period _____
A. During the Month
B. During the weak
C. During the DAY
D. During the year
37: Which method is used for calculating seasonal indices by dividing the average demand for each season by the average total demand to arrive at the seasonal indices for each month?
A. Naïve approach
B. Simple average method
C. Qualitative method
D. None of these
38: Standard error of the estimate is a measure of the variation of the actual (observed) y values from the predicted y values ( ŷi)
A. True
B. False
39: A sequence of regular intervals over a period of time is known as
A. Time series
B. Total sum of squares
C. Tracking signals
D. None of these
40: ______ measure of the variation of the actual Y values around the mean Y Total sum of squares
A. Tracking signals
B. Total sum of squares
C. Tracking signals
D. None of these
41: The long-term movement (increasing or decreasing) of data over time is known as
A. Tracking signals
B. Total sum of squares
C. Tracking signals
D. Trend
42: Trend-adjusted exponential smoothing is a variation of simple exponential smoothing that includes a trend factor
A. Exploratory factor
B. Confirmatory factor
C. Trend factor
D. Both a & b
43: Weighted moving average is a ______
A. Medium-term time series
B. Long-term time series
C. Short-term time series
D. Large-term time series
44: ______ is a method used to forecast demand for a new product or service that is similar to existing products.
A. Qualitative method
B. Expert opinion
C. Delphi method
D. Historical life-cycle analogy
45: ______ is a short-term time series forecasting method in which the average of the most recent demand periods are used to predict demand in the future period.
A. Aggregate forecast
B. Simple average
C. Time series
D. Moving average
46: A ______ item is a part or component of an end product.
A. Dependent demand
B. Independent demand
C. Aggregate forecast
D. Actual demand
47: ______ is a measure of the difference between the mean Y and the predicted or computed value of Y using regression.
A. Coefficient of determination
B. Error sum of squares
C. Total sum of squares
D. Regression sum of squares
48: A ______ item is unrelated to the demand of any other product or item.
A. Dependent demand
B. Independent demand
C. Aggregate forecast
D. Actual demand
49: ______ is a pattern in which demand either increases or decreases irregularly.
A. Nonlinear trend
B. Damped trend
C. Linear trend
D. Historical life-cycle analogy
50: ______ is a forecasting method in which it is assumed that the demand in the next period will be the same as it is in the current period.
A. Naïve approach
B. Delphi method
C. Time series
D. Aggregate forecast
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Demand Forecasting Methods MCQs
