Question

In the abscence of any past data, the best forecasting technique

will be the use of:
a) expert opinions
b) economic indicators
c) naive forecasting
d) economic forecasting

Answer 1

Expert opinions are usually the best forecasting method when there is no historical data to analyze, as they rely on the knowledge and experience of experts to inform predictions.

Step-by-step explanation:

In the absence of any past data to guide forecasting, expert opinions often provide the best method for making informed predictions. Experts can use their knowledge and experience to make educated guesses about likely outcomes, which can be particularly useful when there's no historical data to base predictions on. Naive forecasting assumes that what happened in the most recent period will continue, which is not necessarily a robust method without past data. Economic indicators and economic forecasting rely on historical data and trends, so in their absence, these methods may not be practical.