Saudi Electronic University MGT 530 Moving average 1)Averaging techniques are useful for: A

Saudi Electronic University

MGT 530

Moving average

1)Averaging techniques are useful for:

A.            distinguishing between random and nonrandom variations.

B.            smoothing out fluctuations in time series.

C.            eliminating historical data.

D.            providing accuracy in forecasts.

E.            average people.

2. Moving average forecasting techniques do the following:

A.            Immediately reflect changing patterns in the data.

B.            Lead changes in the data.

C.            Smooth variations in the data.

D.            Operate independently of recent data.

E.            Assist when organizations are relocating.

3. Which is not a characteristic of simple moving averages applied to time series data?

A.            smoothes random variations in the data

B.            weights each historical value equally

C.            lags changes in the data

D.            requires only last period's forecast and actual data

E.            smoothes real variations in the data

4. In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be:

A.            decreased.

B.            increased.

C.            multiplied by a larger alpha.

D.            multiplied by a smaller alpha.

E.            eliminated if the MAD is greater than the MSE.

5. Which technique is used in computing seasonal relatives?

A.            double smoothing

B.            Delphi

C.            mean squared error

D.            centered moving average

E.            exponential smoothing

6. Given the following historical data, what is the simple three-period moving average forecast for period 6?

A.            67

B.            115

C.            69

D.            68

E.            68.67

7. Given the following historical data and weights of .5, .3, and .2, what is the three-period moving average forecast for period 5? A. 144.20

B.            144.80

C.            144.67

D.            143.00

E.            144.00

8. The president of State University wants to forecast student enrollments for this academic year based on the following historical data: What is the forecast for this year using a four-year simple moving average?

A.            18,750

B.            19,500

C.            21,000

D.            22,650

E.            22,800

9. The business analyst for Video Sales, Inc. wants to forecast this year's demand for DVD decoders based following historical data:

What is the forecast for this year using a three-year weighted moving average with weights of .5, .3, and .

on the

2?

A.            163

B.            180

C.            300

D.            420

E.            510

10. Professor Very Busy needs to allocate time next week to include time for office hours. He needs to forecast the number of students who will seek appointments. He has gathered the following data:

What is this week's forecast using a three-week simple moving average?

A.            49

B.            50

C.            52

D.            65

E.            78

11. A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: What is this year's forecast using a two-year weighted moving average with weights of .7 and .3?

A.            19,400

B.            18,600

C.            19,000

D.            11,400

E.            10,600

12. The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: What is this year's forecast using a three-year simple moving average?

A.            2,667

B.            2,600

C.            2,500

D.            2,400

E.            2,333