1)An aggressive decision maker would prefer the minimax regret criterion over the maximin criterion. T/F
2)The expected value criterion ignores the decision maker’s attitude toward risk. T/F
3)Which of the following criteria represents an aggressive/optimistic approach?
c. expected value
d. minimax regret
4)The states of nature in a payoff table should be mutually exclusive and collectively exhaustive. T/F
5)A stationary forecasting model is appropriate for a time series which exhibits primarily:
b. cyclical components
c. random variation
d. seasonal components
6)In the exponential smoothing (ES) technique, the value of alpha, the smoothing constant:
a. is preset by the analyst and not subject to validity testing.
b. typically is at the higher end in the range of possible values.
c. may assume any non-negative value.
d. determines the forecasting model's responsiveness to abrupt changes.
7)June forecast: 71. June actual: 68. Alpha = 1.0. July's
exponentially smoothed forecast is:
8) The "weights" in the weighted moving average method are unequal and typically decrease with the age of the observation.
9) see attachment with picture
10) RDN’s sales of cable modem in San Mateo, California, for the months of January through April were as follows: January – 50, February - 80, March - 70, and April - 60. Suppose exponential smoothing is used with a smoothing constant, alpha, of .20. If the forecast for January was 50, the forecast for May would be approximately: