TRUE

The moving average cannot be updated until the most recent value is known.
23. Forecasts of future demand are used by operations people to plan capacity.
TRUE
Capacity decisions are made for the future and therefore depend on forecasts.
24. An advantage of a weighted moving average is that recent actual results can be given more
importance than what occurred a while ago.
TRUE
Weighted moving averages can be adjusted to make more recent data more important in setting
the forecast.
25. Exponential smoothing is a form of weighted averaging.
TRUE
The most recent period is given the most weight, but prior periods also factor in.
26. A smoothing constant of .1 will cause an exponential smoothing forecast to react more
quickly to a sudden change than a smoothing constant value of .3.
FALSE
Smaller smoothing constants result in less reactive forecast models.
27. The T in the model TAF = S+T represents the time dimension (which is usually expressed in
weeks or months).
FALSE