The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series.
Answer: True
Reference: Demand Patterns
Difficulty: Easy
Keywords: time series, repeated observations
2.
One of the basic time series patterns is trend.
Answer: True
Reference: Demand Patterns
Difficulty: Easy
Keywords: time series, pattern, trend
3.
One of the basic time series patterns is random.
Answer: True
Reference: Demand Patterns
Difficulty: Easy
Keywords: time series, pattern, random
4.
Random variation is an aspect of demand that increases the accuracy of the forecast.
Answer: False
Reference: Demand Patterns
Difficulty: Easy
Keywords: random variation, forecast accuracy
5.
Aggregation is the act of clustering several similar products or services.
Answer: True
Reference: Key Decisions on Making Forecasts
Difficulty: Moderate
Keywords: aggregation, clustering
6.
Aggregating products or services together generally decreases the forecast accuracy.
Answer: False
Reference: Key Decisions on Making Forecasts
Difficulty: Moderate
Keywords: aggregation, forecast accuracy
Judgment methods of forecasting are quantitative methods that use historical data on independent variables to predict demand.
Answer: False
Reference: Key Decisions on Making Forecasts
Difficulty: Moderate
Keywords: judgment method, forecast, historical data, qualitative methods
8.
Time-series analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand.
Answer: True
Reference: Key Decisions on Making Forecasts
Difficulty: Moderate
Keywords: time series,
