CIPS L4M7 Exam - Topic 1 Question 47 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 47
Topic #: 1

[All L4M7 Questions]

Which of the following are examples of subjective methods of forecasting? Select TWO that apply.

ATrend line analysis

BSeasonal variations

CExpert opinion

DMarket research

EMoving averages

Show Suggested Answer

Suggested Answer: A, B

The most common subjective forecasting techniques include the following:

- Market surveys

- Employee surveys

- Expert knowledge (Delphi method is a method using expert knowledge)

- Test marketing

Cycle counting is a periodic analysis of inventory in a storage location which is conducted through the counting of samples instead of physically counting the entire inventory available, so as to quickly have an accurate estimate of the inventory available without causing a stop to the day to day working as is the case with physically counting every unit.

The Pareto principle (also known as the 80/20 rule, the law of the vital few, or the principle of fac-tor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.

Weighted moving averages assign a heavier weighting to more current data points since they are more relevant than data points in the distant past. The sum of the weighting should add up to 1 (or 100 percent).

LO 2, AC 2.3

by Chantay at Sep 14, 2024, 02:25 PM

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Emogene

9 months ago

I thought trend line analysis was subjective too!

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Elenore

9 months ago

Seasonal variations are more objective, right?

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Ciara

10 months ago

Wait, are moving averages not subjective?

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Mee

10 months ago

Totally agree, those are the ones!

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Nickolas

10 months ago

Expert opinion and market research are subjective methods.

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Becky

10 months ago

I feel like trend line analysis and moving averages are more quantitative, so I’d go with expert opinion and market research for sure.

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Fernanda

11 months ago

I’m a bit confused because I thought seasonal variations were more objective. Can someone clarify that for me?

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Rachael

11 months ago

I remember practicing a question like this, and I think market research is also subjective.

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Corrinne

11 months ago

I think expert opinion is definitely one of the subjective methods, but I'm not sure about the second one.

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Leota

11 months ago

I'm confident that expert opinion and market research are the two subjective forecasting methods in this list. Those are my final answers.

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Gerald

11 months ago

Expert opinion and market research seem like the most obvious subjective methods here. I'll select those two and move on.

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Roxanne

11 months ago

Hmm, I'm not totally sure about the difference between subjective and objective forecasting methods. I'll have to think this through carefully.

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Lilli

11 months ago

I think this question is asking about subjective forecasting methods, so I'll focus on options that involve human judgment or opinion rather than quantitative analysis.

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Marguerita

11 months ago

Trend line analysis and moving averages sound like more quantitative, objective techniques. I'll avoid those and go with the options that involve human input.

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Micah

1 year ago

Forget the exam, I'm more interested in finding out which methods allow me to predict the winning lottery numbers. That's the real subjective forecasting I need!

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Donette

1 year ago

Moving averages? Really? That sounds like a statistical technique, not a subjective method. I'm going to have to think about this one.

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Derick

1 year ago

Market research is a great example of a subjective forecasting method. I always thought it was more on the objective side, but this question has me rethinking that.

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