Forecasting chap10

Question 1

What are the 4 components of time series analysis?

Answer 1

• the trend
• cyclical variations
• seasonal variations
• random fluctuations

Question 2

Examples of quantitative decision making techniques…

Answer 2

• decision tress
• time serious analysis
• absenteeism

Question 3

Examples of qualitative decision making techniques…

Answer 3

• SWOT analysis
• PEST analysis
• market research
• ansoffs matrix

Question 4

What is time series analysis?

Answer 4

A moving average. A moving average uses past data and looks at data over a period of time and combines it.

Question 5

What is the delphi technique?

Answer 5

• structured technique
• relies of information from experts
• usually takes form of a questionnaire
• experts are asked for their opinion
• their opinion is shared and summarised
• then they are given the chance to revise their answers

Question 6

How is time series analysis useful?

Answer 6

It is more useful for a business that faces cyclical or seasonal change in demand, because the analysis will iron out the variations and give a long term trend for the data.

Question 7

What are the limitations of forecasting?

Answer 7

• they do not take into account the businesses objectives

- a lot of assumptions which creates uncertainty

Question 8

How do you calculate the 3 period average?

Answer 8

• add up the the last 3 years

- divide by 3