San Jose State University

BUS 140

Quiz 4 - Chap 4

TRUE/FALSE QUESTIONS

1)Forecasts may be influenced by a product's position in its life cycle.

2. A time-series model uses a series of past data points to make the forecast.
3. Most forecasting techniques assume that there is some underlying stability in the system.
4. Forecasts of individual products tend to be more accurate than forecasts of product families.
5. In exponential smoothing, you should choose low values of alpha (a) when underlying average is likely to change.
6.  The sales force composite forecasting method relies on salespersons' estimates of expected sales.
7. Qualitative forecasting methods are used when the situation is vague and little data exist.
8. A naïve forecast for September sales of a product would be equal to the forecast for August.
9. The larger the standard error of the estimate, the more accurate the forecasting model.
10. In trend projection, a negative regression slope is mathematically impossible.