OPS 350 Week 2 Quiz

OPS 350 Week 2 Quiz | Assignment Help | University Of Phoenix 

OPS/350: Operations Management

Week 2 Quiz:

 

Question 1

Independent variables are assumed to "cause" the results that a forecaster wishes to predict.

 

 

Question 2

Time-series analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand.

o   True

o   False

 

Question 3

Aggregation is the act of clustering several similar products or services.

o   True

o   False

 

 

Question 4

Judgment methods of forecasting should never be used with quantitative forecasting methods.

o   True

o   False

 

 

 

 

Question 5

The naive forecast may be adapted to take into account a demand trend.

 

o   True

o   False

 

Question 6

Forecasts almost always contain errors.

o   True

o   False

 

 

Question 7

A bias error results from unpredictable factors that cause the forecast to deviate from actual demand.

o   True

o   False

 

Question 8

A water ski manufacturer believes they can double their sales by producing snow skis during the other half of the year. This approach to demand management is an example of complementary products.

o   True

o   False

 

 

 

 

 

 

Question 9

A naive forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.

 

o   True

o   False

 

 

Question 10

Divergence is the extent to which the process is customized with considerable latitude on how the tasks are performed.

o   True

o   False

 

 

Question 11

Market research is a systematic approach to determine consumer interest in a product or service by creating and testing hypotheses through data-gathering surveys.

 

Question 12

Service providers with a line process tend to move customers, materials, or information in a fixed sequence from one operation to the next.

 

o   True

o   False

 

 

 

 

Question 13

Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.

 

o   True

o   False

 

 

 

 

Question 14

Independent variables is a causal method of forecasting in which one variable is related to one or more variables by a linear equation.

 

Question 15

A forecaster that uses a holdout set approach as a final test for forecast accuracy typically uses:

 

 

o   The older observations in the data set to develop the forecast and more recent to check accuracy.

o   The newer observations in the data set to develop the forecast and older observations to check accuracy.      

o   Every other observation to develop the forecast and the remaining observations to check the accuracy.

o   The entire data set available to develop the forecast.

 

 

 

 

 

 

 

 

Question 16

Which one of the following statements about forecasting is FALSE?

 

o   Causal methods of forecasting use historical data on independent variables (promotional campaigns, competitors' actions, etc.) to predict demand.

o   Time series express the relationship between the factor to be forecast and related factors such as promotional campaigns, economic conditions, and competitor actions.

 

o   A time series is a list of repeated observations of a phenomenon, such as demand, arranged in the order in which they actually occurred.

 

o   Three general types of forecasting techniques are used for demand forecasting: time-series analysis, causal methods, and judgment methods.

 

 

Question 17

Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international events or because of a lack of demand history reflecting the stages of demand from product development to decline?

 

o   seasonal

o   random

o   cyclical

o   horizontal

 

 

 

 

 

 

Question 18

The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series.

 

o   True

o   False

 

 

Question 19

The causal method of forecasting uses historical data on independent variables (such as promotional campaigns and economic conditions) to predict the demand of dependent variables (such as sales volume).

o   True

o   False

 

 

Question 20

A simple moving average of one period will yield identical results to a naive forecast.

o   True

o   False

 

 

 

 

 

 

 

 

Question 21

Which one of the following statements is more of a general characteristic of a service organization, as compared to a manufacturing organization?

 

o   Output can be inventoried.

o   There is less customer contact.

o   The response time is longer.

o   The facilities tend to be smaller.

 

 

 

Question 22

Which statement about forecast accuracy is TRUE?

 

o   The ultimate test of forecasting power is how well a model fits past data.

o   A manager must be careful not to "overfit" past data.

o   The best technique in explaining past data is the best technique to predict the future.

o   The ultimate test of forecasting power is how a model fits holdout samples.

 

Question 23

Using salesforce estimates for forecasting has the advantage that:

 

o   Confusion between customer "wants" (wish list) and customer "needs" (necessary purchases) is eliminated.

o   Statistical estimates of seasonal factors are more precise than any other approach.

o   No biases exist in the forecasts.

o   Forecasts of individual sales force members can be easily combined to get regional or national sales totals.

 

 

Question 24

A weary traveler shows up at a hotel desk at midnight without a reservation. The desk clerk informs him that there is a room available, but sadly it is marked up 80% higher than the usual price. This is an example of promotional pricing.

 

o   True

o   False