Final answer:
Qualitative forecasts are subjective and rely on expert opinions, quantitative forecasts are objective and rely on data analysis, and time series forecasts focus on historical data patterns.
Step-by-step explanation:
There are three types of forecasts: qualitative, quantitative, and time series forecasts.
- Qualitative forecasts are subjective and rely on expert opinions or judgment. They are used when historical data or mathematical models are not available. For example, when predicting consumer preferences for a new product or forecasting political trends.
- Quantitative forecasts are objective and rely on quantitative data analysis. They use historical data and mathematical models to make predictions. For example, when forecasting sales based on past sales data or predicting stock prices based on financial indicators.
- Time series forecasts are a specific type of quantitative forecast that focuses on analyzing historical data patterns to predict future values. They are used when the data exhibit a trend or seasonality. For example, when forecasting monthly sales based on past monthly sales data.