?### Calculate the exponential smoothing forecast for Week 3 using a smoothing constant of 0.2.
The forecast for Week 1 is 32. The time-series data follow...

?### The probabilities shown in the table below represent the estimate of sales for a new product.
Sales (Units).. Probability
0-200 .................1...

?### Automite Company is an automobile replacement parts dealer in a large metropolitan
community. Automite is preparing its sales forecast for the coming...

?### company has accumulated data for the last 24 months in order to determine if there is an
independent variable that could be used to estimate shipping...

?### The correlation coefficient that indicates the weakest linear association between two
variables is

?### Correlation is a term frequently used in conjunction with regression analysis and is
measured by the value of the coefficient of correlation, r. The ...

?### A regression equation

?### All of the following are assumptions underlying the validity of linear regression
output except

?### In the standard regression equation y = a + bx, the letter b is best described as a(n)

?### The letter x in the standard regression equation is best described as a(n)

?### In regression analysis, which of the following correlation coefficients represents the strongest relationship between the independent and dependent va...

?### The internal auditor of a bank has developed a multiple regression model which has been used for a number of years to estimate the amount of interest ...

?### The manager of the assembly department of a company would like to estimate the fixed and variable components of the department’s cost. To do so, the m...

?### A division uses a regression in which monthly advertising expenditures are used to predict monthly product sales (both in millions of dollars). The re...

?### In determining cost behavior in business, the cost function is often expressed as y = a + bx. Which one of the following cost estimation methods shoul...

?### For cost estimation, simple regression differs from multiple regression in that simple regression uses only

?### Slawford Manufacturing developed the following multiple regression equation, utilizing many
years of data, and uses it to model, or estimate, the cos...

?### In order to analyze sales as a function of advertising expenses, the sales manager of Smith
Company developed a simple regression model. The model in...

?### The results of regressing Y against X are as follows:
Coefficient
Intercept 5.23
Slope 1.54
When the value of X is 10, the estimated value of Y is

?### While gathering information to use in preparing the annual budget, a company identifies
cost drivers associated with manufacturing costs. Which one o...

?### A company uses simple regression to predict one of its semi-variable costs. The computed
equation of y = –25,000 + 2.5x appears to have a good visual...

?### A single-product company uses regression to predict one of its factory overhead costs with materials used as the independent variable. The regression ...

?### SleepTight, a nationwide retail mattress firm, will begin selling high-end crib mattresses next year. Management believes sales for this product will ...

?### Corrigon Industries is preparing a bid for a special project requiring the production of 35,000 units. The engineering personnel have advised that the...

?### The average labor cost per unit for the first batch produced by a new process is $120. The cumulative average labor cost after the second batch is $72...

?### Lake Corporation manufactures specialty components for the electronics industry in a highly labor intensive environment. Arc Electronics has asked Lak...

?### A particular manufacturing job is subject to an estimated 90% learning curve. The first unit required 50 labor hours to complete. What is the cumulati...

?### The expected value of perfect information is the

?### A particular manufacturing job is subject to an estimated 80% learning curve. The first unit required 50 labor hours to complete. If the learning curv...

?### A learning curve of 80% assumes that direct labor costs are reduced by 20% for each doubling of output. What is the incremental cost of the sixteenth ...

?### Red Baron, Inc., is a new competitor in the production of airplane propellers. Red Baron has to train its employees in the process of making propeller...

?### It is estimated that a particular manufacturing job is subject to an 80% learning curve. The first unit required 50 labor hours to complete. What is t...

?### A company plans to bid on a special project that calls for a total of 24,000 units. The units will be produced in lots, with the first lot consisting ...

?### In decision making under conditions of uncertainty, expected value refers to the

?### Seacraft, Inc., received a request for a competitive bid for the sale of one of its unique boating products with a desired modification. Seacraft is n...

?### The technique used to predict the change in direct labor hours as a new process stabilizes
is

?### Learning curves are best used to predict

?### A manufacturing company has the opportunity to submit a bid for 20 units of a product on which it has already produced two 10-unit lots. The productio...

?### Which one of the following will allow a better use of standard costs and variance analysis to help improve managerial decision-making?

?### Which one of the following techniques would most likely be used to analyze reductions in the time required to perform a task as experience with that t...

?### A manufacturing firm plans to bid on a special order of 80 units that will be manufactured in
lots of 10 units each. The production manager estimates...

?### Which one of the following statements best demonstrates the concept of the learning
curve?

?### Langley Corporation is developing a new product that will be manufactured in pairs. The
company recently produced the first two units of this product...

?### The quantitative technique used to project the direct labor costs for full-scale production of a
product from the initial run of the product is

?### Which one of the following is a sales forecasting technique that can be utilized in preparing the annual profit plan?

?### The four components of time series data are secular trend, cyclical variation, seasonality, and random variation. The seasonality in the data can be r...

?### A forecasting technique that is a combination of the last forecast and the last observed value is called

?### As part of a risk analysis, an auditor wishes to forecast the percentage growth in next monthâ€™s sales for a particular plant using the past 30 month...

?### What are the four components of a time series?

?### The moving-average method of forecasting

?### Violation of which assumption underlying regression analysis is prevalent in time series
analysis?

?### Sales of big-screen televisions have grown steadily during the past 5 years. A dealer
predicted that the demand for February would be 148 televisions...

?### Sunrise Corporation’s actual sales for May were $22,000,000, a result $600,000 greater
than projected. Actual sales for June totaled $22,500,000. Usi...

?### A common characteristic of simple regression analysis, learning curve analysis, and time
series analysis is that they all.

?### Oakhurst manufactures goods the month before they are sold and uses a 3-month moving
average to predict sales. Sales for the first 4 months of the ye...

?### Knollwood Industries uses exponential smoothing to forecast collections of outstanding
accounts receivable. The company’s credit sales are relatively...

?### The expected monetary value of an event

?### Expected value in decision analysis is

?### The expected monetary value of an act is the

?### The expected value of perfect information is the

?### In decision theory, those uncontrollable future events that can affect the outcome of a
decision are

?### The Booster Club at Blair College sells hot dogs at home basketball games. The group has a
frequency distribution of the demand for hot dogs per game...

?### A company is simulating the actions of a government agency in which 50% of the time a
recall of a product is required, 40% of the time only notificat...

?### Sweivel Company is preparing its budget and, taking into consideration the recent pace of
economic recovery, has developed several sales forecasts an...

?### Bosworth, Inc., sells its product for $100 per unit while incurring variable operating costs of
$60 per unit and $25,000,000 of fixed operating costs...

?### Brown Veterinary Clinic schedules weekend staff based on the number of animals being
boarded. The clinic has a total of four staff members available ...

?### A quantitative technique useful in projecting a firm’s sales and profits is

?### A widely used approach that managers use to recognize uncertainty about individual items
and to obtain an immediate financial estimate of the consequ...

?### Through the use of decision models, managers thoroughly analyze many alternatives and
decide on the best alternative for the company. Often, the actu...

?### The process of evaluating the effect of changes in variables such as sales price or wage
rates on the optimum solution in a linear programming applic...

?### Tarleton Company operates several retail stores. To support the company’s long-term
goals, operating income should be at least 10% of sales. Tarleton...

?### Which of the following steps in the strategic management process should be completed
first?

?### A firm’s statement of broad objectives or mission statement should accomplish all of the
following except

?### Intensity of rivalry among existing firms in an industry increases when
I. Products are relatively undifferentiated
II. Consumer switching costs are...

?### Structural considerations affecting the threat of substitutes include all of the
following except

?### A corporation is performing research to determine the feasibility of entering the truck rental
industry. The decision to enter the market is most lik...

?### Which industry factor does not contribute to competitive rivalry?

?### Which condition does not increase the threat of new competitor entry into the industry?

?### The concurrent action of basic competitive forces as defined by Porter’s model determines
the

?### Which factor most likely encourages entry into an existing market?

?### Which of the following is a favorable condition for a firm competing in a profitable,
expanding industry?

?### Michael E. Porter’s competitive strategies model includes an analysis of the
competitive forces that determine the attractiveness of an industry. The...

?### Which factor increases the threat of entry into an industry?

?### A manufacturing company produces plastic utensils for a particular segment at the lowest
possible cost. The company is pursuing a cost

?### What operations strategy is most likely to be adopted when the product sold by an
organization is a commodity and the market is very large?

?### During the growth stage of a product’s life cycle,

?### In a product’s life cycle, the first symptom of the decline stage is a decline in the

?### Jack-O-Lantern, Inc., is trying to decide which competitive strategy it should try to
implement. Since the company has recently started producing Hal...

?### A strategic business unit (SBU) has a high relative market share (RMS) and a low market
growth rate (MGR). According to the growth-share matrix for c...

?### In the Boston Consulting Group (BCG) growth-share matrix, which strategic business units
are strong competitors in high growth markets but usually ha...

?### A strategic business unit (SBU) has a low relative market share (RMS) and a high market
growth rate (MGR). According to the portfolio model for compe...

?### According to the growth-share matrix approach developed by the Boston Consulting
Group, a harvest strategy is most likely to be used for SBUs that ar...

?### According to the Boston Consulting Group’s portfolio model for competitive
analysis, the strategy for a strong cash cow should be

?### A typical life cycle progression for a successful firm within the Boston Consulting
Group’s growth-share matrix is

?### The balanced scorecard provides an action plan for achieving competitive success by
focusing management attention on critical success factors. Which ...

?### Using the balanced scorecard approach, an organization evaluates managerial performance
based on

?### On a balanced scorecard, which of the following would not be an example of a
customer satisfaction measure?

?### On a balanced scorecard, which is more of an internal process measure than an externalbased
measure?

?### Consider the following categories of performance measures.
I. Profitability measures.
II. Customer-satisfaction measures.
III. Efficiency, quality,...

?### Which one of the following statements about a balanced scorecard is incorrect?