CDPP Statistical Analysis for Demand Planning

Question 1

What is seasonality in demand patterns?

Accepted Answer

Predictable, recurring fluctuations in demand associated with specific time periods within a year

Answer

Random demand variation with no pattern

Answer

A decrease in demand during winter only

Answer

Demand that only occurs during holiday seasons

Question 2

What is trend analysis in demand forecasting?

Accepted Answer

Identifying the long-term directional movement of demand over time, whether increasing, decreasing, or flat

Answer

A fashion industry analysis of clothing trends

Answer

A social media trending topics analysis

Answer

A stock market technical analysis method

Question 3

What is regression analysis and how is it used in demand planning?

Accepted Answer

A statistical method that models the relationship between demand and one or more explanatory variables

Answer

A psychological assessment of emotional regression

Answer

A method for returning defective products to suppliers

Answer

A backward-looking historical analysis only

Question 4

What is the coefficient of determination (R²) and why does it matter?

Accepted Answer

A measure of how well a regression model explains the variation in the data, ranging from 0 to 1

Answer

A coefficient for determining shipping routes

Answer

A ranking of determination levels among planning staff

Answer

A measurement of demand determinism in economic theory

Question 5

What is the difference between correlation and causation in demand analysis?

Accepted Answer

Correlation shows two variables move together; causation proves one actually causes the other

Answer

They are identical concepts

Answer

Correlation is always stronger than causation

Answer

Causation can exist without any correlation

Question 6

What is a confidence interval in demand forecasting?

Accepted Answer

A range around the forecast indicating the probability that actual demand will fall within that range

Answer

A measure of the forecaster's personal confidence level

Answer

The interval between successive forecasting meetings

Answer

A mandatory waiting period before accepting a forecast