09) Into which three-time horizon categories Forecasts are usually classified? A
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09) Into which three-time horizon categories Forecasts are usually classified? A) Short-range, medium-range, and long-range B) finance/accounting, marketing, and operations C) Strategic, tactical, and operational D) Exponential smoothing, regression, and time scries 10) The two general approaches to forecasting are: A) Qualitative and quantitative B) Mathematical and statistical. C) Judgmental and qualitative D) Historical and associative. E) Judgmental and associative 11) In time series, which of the following cannot be predicted? A) Large increases in demand B) Cycles C) Seasonal fluctuations D) Random variations E) Large decreases in demand 12) The degree or strength of a relationship between two variables is shown by the: A) alpha B) mean C) mean absolute deviation. D) coefficient of correlation E) cumulative error 13) Effective capacity is the: A) maximum output of a system in a given period B) capacity a firm expects to achieve given the current operating constraints. C) average output that can be achieved under ideal conditions D) minimum usable capacity of a particular facility E) sum of all of the organization's inputs. 14) Break-even is the number of units at which: A) total revenue equals price times quantity B) total revenue equals total variable cost. C) total revenue equals total fixed cost D) total profit equals total cost. E) total revenue equals total cost.Explanation / Answer
9. Option A. Time horizon categories are according to period, time and use. Hence manager needs short, medium and long range forecast to make strategic decisions for the company
10.Option A. Qualitative and Quantitative are the 2 basic approaches for forecasting. Qualitative forecasting is subjective whereas, Quantitative includes naive forecasting methods.
11.Option D. Random variations are the irregular component in time series that are unpredictable.
12, Option D. Coefficient of correlation measures the degree or strength of relationship between 2 variables.
13.Option A. Effective Capacity is the maximum amount of work that a organisation can complete in a given time period.
14.Option D. Break Even point represents the optimum point where the total cost both fixed and variable is covered by the total revenue. Hence, total revenue equals total costs. At break even, profit is zero.
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