41) The forecasting technique which involves the use of the least squares statistical method to examine trends and takes into account seasonal and cyclical fluctuations is known as A) compound growth rate projection. B) the Delphi method. C) time series projection. D) exponential smoothing projection. 42) Quantitative forecasting that projects past data without explaining the reasons for future trends is called A) scientific forecasting. B) dumb forecasting. C) empirical forecasting. D) naïve forecasting. 43) The following is not a drawback of forecasting using the compound growth rate method: A) only considers first and last observations. B) considers only equal absolute changes. C) disregards fluctuations between the original and terminal observations. D) does not consider any trends in the data. 44) Charting observations on a semi-logarithmic graph will help the analyst to ascertain whether A) absolute changes from period to period are constant. B) whether percentage changes from period to period are constant. C) whether percentage changes from period to period are declining. D) Both B and C. 45) A major problem in projecting with a trend line is that A) only straight-line projections can be accommodated. B) it is valid only if the trend is upward. C) it will not forecast turning points in activity. D) it is a very complex method of forecasting. 46) The following is the exponential trend equation to forecast sales (S): A) S = a b(t) B) S = a bt C) S = a b(t) c(t)2 D) None of the above. 47) Among the advantages of the ________ technique of forecasting are ease of calculation relatively little requirement for analytical skills and the ability to provide the analyst with information regarding the statistical significance of results and the size of statistical errors. A) least-squares trend analysis B) compound growth rate C) visual trend-fitting D) expert opinion 48) Among the advantages of the least-squares trend analysis techniques is A) the ease of calculation. B) relatively little analytical skill required. C) its ability to provide information regarding the statistical significance of the results. D) All of the above. 49) The forecasting method that involves using an average of past observations to predict the future (if the forecaster feels that the future is a reflection of some average of past results) is the A) moving average method. B) econometric forecasting method. C) exponential smoothing method. D) Both A and B. E) Both A and C. 50) An explanatory forecasting technique in which the analyst must select independent variables that help determine the dependent variable is called A) exponential smoothing. B) regression analysis. C) trend analysis. D) moving average method.
