AN 300 Final Exam Questions with Correct Answers

AN 300 Final Exam Questions with Correct Answers 100% Verified Rated A+ Which of the following statements about time-series forecasting is TRUE? Check all that apply.-It only works with trend data patterns.-It is a predictive analytics method.-It is a predictive analytics technique.-It applies to strategic planning by predicting market growth rate.-It needs data on observations of an item of interest over time.-It answers what should happen questions.-It predicts the future outcome of the item of interest. - Correct Answer -It is a predictive analytics technique.-It applies to strategic planning by predicting market growth rate.-It needs data on observations of an item of interest over time.-It predicts the future outcome of the item of interest.What kind of data pattern is depicted in the following line graph? Check all that apply.Its a graph with a straight red line angled positively. There is a Blue line that begins below the red line and then had alternating periods above and below the line.-Trend -Random -Level -Seasonality -Cycle - Correct Answer -Trend -Seasonality A recurring pattern that occurs at set periods within a larger time frame. - Correct Answer Seasonality A gradual increase in values over time. - Correct Answer Upward Trend A gradual decrease in values over time. - Correct Answer Downward Trend 1 / 3

A constant average value over time. - Correct Answer Level Which of the following is a business application of time series forecasting?-Sales forecast of swimsuits from advertising expenditure.-Sales forecast of swimsuits from a survey of vacationers.-Sales forecasts of swimsuits from past records.-Sales forecast of swimsuits from demand of sunglasses. - Correct Answer -Sales forecasts of swimsuits from past records.Match the characteristics on the left with the most appropriate forecasting methods to which it applies on the right.It requires only one historical data value. - Correct Answer Naive It adapts readily to sudden shifts in data pattern. - Correct Answer Naive It requires the data points in the time series as well as the number of periods used in forecasting. - Correct Answer Simple moving average It is a weighted average of all prior historical actual vales. - Correct Answer Exponential smoothing average It uses the "best fit" linear trend line to make predictions. - Correct Answer Linear Regression It uses indicator variables to capture variations. - Correct Answer Linear regression for seasonality Which of the following statements about time-series forecasting methods is TRUE? Check all that apply.-Linear Regression is the method of choice for data with a trend pattern. 2 / 3

-You choose a large value for alpha when using the Exponential Smoothing method to give less weight to the most recent data.-Linear Regression for Seasonality without Trend method is appropriate for data with a seasonal pattern only.-There is no time-series forecasting method for data with both seasonal and trend patterns.-You choose a small value for "k" when using the Simple Moving Average method of order "k" to track movement in the most recent data.-Linear Regression uses the time period as the dependent variable.-The Simple Average method is also known as the Historical Moving Average method. - Correct Answer -Linear Regression is the method of choice for data with a trend pattern.-Linear Regression for Seasonality without Trend method is appropriate for data with a seasonal pattern only.-You choose a small value for "k" when using the Simple Moving Average method of order "k" to track movement in the most recent data.-The Simple Average method is also known as the Historical Moving Average method.

Given the following sales data (in $000) for C&A's product:

January -15 February -18 March -14 April -16 May -13 June -16

• What is the naive forecast for June?
• What is the historical moving average forecast for July? (rounded to 2 decimal places)
• What is the simple moving average forecast of order 3 for June? (rounded to 2 decimal places)
• What is the simple moving average forecast of order 1 for June?
• What is the exponential smoothing forecast for July if alpha = 0.2 and the forecast for February is

15? (rounded to 2 decimal places)

• The simple moving average method of order 1 is the same as the Naive method. (T/F) - Correct

Answer 1. 13 (Apply May to June)

• 15.33 (All months sales/number of months)
• / 3