Budgeting and Forecasting Quiz | Budgeting and Forecasting Online Test for Practice

31. What is regression analysis?

1. A statistical method used to identify the relationship between two or more variables
2. A forecasting method that uses historical data to identify patterns and trends
3. A forecasting method that uses expert judgment and opinion
4. A forecasting method that is based on mathematical models

32. What is forecasting error?

1. The difference between the actual value and the forecasted value
2. The difference between the budgeted amount and the actual amount
3. The difference between the planned and actual activity levels
4. The difference between the actual sales and the budgeted sales

33. What is mean absolute deviation (MAD)?

1. A measure of the average absolute forecast error
2. A measure of the variability of a time series
3. A measure of the trend in a time series
4. A measure of the seasonality in a time series

34. What is a master budget?

1. A comprehensive financial plan that includes all of a company's budgets
2. A budget that focuses on a specific department or division
3. A budget that is used for short-term planning
4. A budget that is used for long-term planning

35. What is mean squared error (MSE)?

1. A measure of the average squared forecast error
2. A measure of the variability of a time series
3. A measure of the trend in a time series
4. A measure of the seasonality in a time series

36. What is root mean squared error (RMSE)?

1. The square root of the mean squared error
2. A measure of the variability of a time series
3. A measure of the trend in a time series
4. A measure of the seasonality in a time series

37. What is qualitative forecasting?

1. Forecasting based on expert opinions and judgments
2. Forecasting based on historical data
3. Forecasting based on mathematical models
4. Forecasting based on statistical analysis

38. Which of the following is a qualitative forecasting method?

1. Delphi method
2. Moving averages
3. Regression analysis
4. Exponential smoothing

39. What is quantitative forecasting?

1. Forecasting based on historical data and mathematical models
2. Forecasting based on expert opinions and judgments
3. Forecasting based on subjective assessments
4. Forecasting based on assumptions

40. Which of the following is a quantitative forecasting method?

1. Time series analysis
2. Regression analysis
3. Causal models
4. All of the above

41. What is time series analysis?

1. Analyzing historical data to identify patterns and trends
2. Analyzing the relationship between two or more variables
3. Analyzing expert opinions
4. Analyzing economic indicators

42. Which of the following is a time series analysis method?

1. Moving averages
2. Exponential smoothing
3. Autoregressive Integrated Moving Average (ARIMA)
4. All of the above

43. What is moving average?

1. The average of the most recent data points in a time series
2. A forecast based on the most recent observation
3. A forecast based on expert opinion
4. A forecast based on regression analysis

44. What is exponential smoothing?

1. A forecasting method that gives more weight to recent data points
2. A forecasting method that uses all historical data equally
3. A forecasting method that is based on trend and seasonality
4. A forecasting method that is based on expert opinion

45. What is the starting point for the master budget?

1. The sales budget
2. The production budget
3. The cash budget
4. The capital budget