1. Why do corporations emphasize cash flow forecasts?

2. Discuss the costs of relying on inaccurate cash flow forecasts.

3. Why is the forecasting philosophy important?

4. Discuss the following statement: "The cash flow forecast is made solely by one department, with no input from other departments."

5. Discuss why a cash budget is a fundamental component of the cash flow forecast.

6. Identify and discuss common statistical measures of location and variability.

7. Discuss the relationship between the standard error and the standard deviation.

8. Discuss how a forecaster controls the t-value used for confidence interval calculations.

9. How does back-testing relate to cash flow forecasting?

10. What role does the use of absolute values play in the calculation of MAD?

11. What impact does an increase in have on the exponential smoothing forecasts?

12. What is a scatter plot?

13. Describe the relationship between correlation analysis and regression analysis.

14. Discuss the interpretation of a small P-value on the coefficient for sales in a regression model used to forecast cash flow.

15. Describe the relationship between P-values and t-values.