Analysis and Forecasting Techniques MCQs

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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...






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






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






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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...






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






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






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A regression equation






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






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






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






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






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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 ...






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






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






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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...






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






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






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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...






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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






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






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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...






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






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






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






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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...






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






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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...






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The expected value of perfect information is the






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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...






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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 ...






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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...






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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...






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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 ...






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






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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...






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






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Learning curves are best used to predict






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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...






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






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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...






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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...






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






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






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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






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






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






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






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






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What are the four components of a time series?






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The moving-average method of forecasting






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






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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...






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Sunrise Corporations actual sales for May were $22,000,000, a result $600,000 greater than projected. Actual sales for June totaled $22,500,000. Usi...






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






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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...






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Knollwood Industries uses exponential smoothing to forecast collections of outstanding accounts receivable. The companys credit sales are relatively...






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The expected monetary value of an event






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Expected value in decision analysis is






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The expected monetary value of an act is the






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The expected value of perfect information is the






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






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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...






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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...






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






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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...






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






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A quantitative technique useful in projecting a firms sales and profits is






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






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






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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...






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






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






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A firms statement of broad objectives or mission statement should accomplish all of the following except






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






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






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






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Which industry factor does not contribute to competitive rivalry?






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






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The concurrent action of basic competitive forces as defined by Porters model determines the






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Which factor most likely encourages entry into an existing market?






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






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Michael E. Porters competitive strategies model includes an analysis of the competitive forces that determine the attractiveness of an industry. The...






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Which factor increases the threat of entry into an industry?






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






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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?






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During the growth stage of a products life cycle,






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In a products life cycle, the first symptom of the decline stage is a decline in the






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






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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...






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






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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...






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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...






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According to the Boston Consulting Groups portfolio model for competitive analysis, the strategy for a strong cash cow should be






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A typical life cycle progression for a successful firm within the Boston Consulting Groups growth-share matrix is






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






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






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






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






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






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