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Supplementary objective test questions

CHAPTER 11 – FORECASTING

Questions 11.1 and 11.2 are based on the following data

In a time series, the multiplicative model is used to forecast sales and the following
seasonal variations apply:

Quarter 1 2 3 4

Seasonal variation 1.2 1.8 0.6 ?

The actual sales for the first two quarters of 20X8 were:

Quarter 1 $110,000

Quarter 2 $125,000

11.1 The seasonal variation to the fourth quarter is:

A 0.2

B 0.4

C 0.6

D 0.8

11.2 The trend line for sales:

A Decreased between quarter 1 and quarter 2

B Increased between quarter 1 and quarter 2

C Remained constant between quarter 1 and quarter 2

D Cannot be determined from the information given

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