6. Forecasts

A. are rarely perfect

B. become more accurate with longer time horizons

C. none of the choices are correct

D. all of the choices are correct

E. are more accurate for individual items than for groups of items

7. In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be:

A. multiplied by a smaller alpha

B. increased

C. decreased

D. multiplied by a larger alpha

8. The primary purpose of the mean absolute deviation (MAD) in forecasting is to

A. seasonally adjust the forecast

B. estimate forecast error

C. estimate the trend line

D. all the choices are correct

E. measure forecast accuracy