MAT 543 EXAM 2
NOTE: I ALSO INCLUDE SEVERAL VERSIONS QUESTIONS AND ANSWERS AS A BONUS

Question 1 

What is the number one rule of forecasting?
 
Always plot the data on a graph.
 
Remove all errors.
 
Implement simplicity for clarity.
 
Use facts over observations.
Question 2 

Most forecasting problems faced by the health services manager can be accomplished using some form of forecasting known as what?
 
judgment forecasting
 
analytic forecasting
 
expert forecasting
 
genius forecasting
Question 3 

What is analytic forecasting useful for predicting?
 
a new phenomenon
 
a situation for which little data exists
 
consensus opinions
 
annual inventory for a services organization
Question 4 

A manager who is effective with forecasting will be able to do what?
 
reduce forecasting errors
 
make accurate forecasts
 
predict employee relationships
 
eliminate error
Question 5 

What is another term for forecast?
 
predict
 
anticipate
 
foreshadow
 
guess
Question 6 

If forecasting using 33 months of historical data, how many months should you forecast if using moving averages, n=2?
 
1
 
2
 
3
 
4
Question 7 

If forecasting using 33 months of historical data, how many months should you forecast if using a 95% Confidence Interval?
 
1
 
2
 
3
 
4
Question 8 

Average percent change as a forecasting method relies on what primary assumption?
 
cause and effect
 
the past predicts the future
 
naiveté
 
imputation
Question 9 

Using moving averages for n = 2 and n = 3 will produce what types of forecasts?
 
equally accurate forecasts
 
widely varying forecasts
 
forecasts with small variances
 
forecasts with statistical differences
Question 10 

Using a smoothing constant of 0.3, 0.35, or 0.4 will produce what types of forecasts?
 
equally accurate forecasts
 
widely varying forecasts
 
forecasts with small variances
 
forecasts with statistical differences
Question 11 

What do regression lines look like?
 
curved
 
straight
 
zigzagged
 
inverted 
Question 12 

What does a slope of zero mean?
 
As Y changes, X also varies.
 
As X changes, Y also varies.
 
As Y changes, X remains constant.
 
As X changes, Y remains constant. 
Question 13 

What is the purpose for using confidence intervals in regression forecasting?
 
to place ranges around linear point estimates going into the future
 
to place ranges around linear point estimates going into the past
 
to place ranges around linear point estimates that reside in a cluster
 
to place ranges around linear point estimates that have minimal statistical congruence
Question 14 

The mean absolute deviation of the regression forecast is determined through what mechanism?
 
the predicted value of the slope
 
the absolute average of the regression residuals
 
the 95% confidence interval of the coefficient
 
the regression formula
Question 15 

If forecasting using 33 months of historical data, how many months should you forecast if using a regression forecast?
 
10
 
11
 
12
 
13
Question 16 

The price per test is $85, and the variable cost per test is $15.  Using this information, what is the breakeven point in volume if the allocated fixed costs were $210,000?
 
3,000
 
5,000
 
7,000
 
9,000
Question 17 

Service systems used to provide medical care are complex and involve multiple steps. The capacity of any service system is determined by the capacity of each individual step in the production process.  The step that has the lowest capacity determines what?
 
the entire system’s success rate
 
the potential failure of the entire system
 
the capacity of the entire system
 
the efficiency of the entire system
Question 18 

The price per test is $85, and the variable cost per test is $15.  Using this information, what is the breakeven point in volume if the allocated fixed costs were $350,000? 
 
3,000
 
5,000
 
7,000
 
9,000
Question 19 

What is true of system capacity?
 
It is unlimited across the globe.
 
It is unlimited in certain developed nations.
 
It is finite during certain times of the year.
 
It is finite regardless of location or time.
Question 20 

The price per test is $85, and the variable cost per test is $15.  What is the contribution margin per test?
 
$65
 
$70
 
$75
 
$80
Question 21 

Queuing theory calculations describe service times according to which probability distribution?
 
Poisson
 
Exponential
 
Parabolic
 
Hyperbolic
Question 22 

In a single channel single server system, if the service rate is 4 per hour and the arrival rate is 6 per hours, what is the probability that a unit must wait (Pw)?
 
33.33%
 
50%
 
66.67%
 
100%
Question 23 

When queuing theory models are used in the development of appointment system, giving appointments every 15 minutes is the same as an arrival rate of how many per hour?
 
4
 
5
 
10
 
12 
Question 24 

In the single server single channel queue theory models, the closer μ is to λ, which will be higher?
 
W
 
L
 
Po
 
Pq
Question 25 

In a single channel single server system, if the service rate is 4 per hour and the arrival rate is 6 per hours, what is the average time a unit spends waiting in the system (Wq)?
 
infinite
 
approximately 20 minutes
 
approximately 40 minutes
 
approximately 1 hour