Question

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

a) Time series analysis
b) Regression analysis
c) Delphi method
d) Moving averages

Answer 1

The Delphi method is the qualitative forecasting technique among the given options, which relies on expert consensus rather than numerical data.

Step-by-step explanation:

The qualitative forecasting technique mentioned in the options is the Delphi method. Qualitative forecasting techniques are methodologies that are used when historical data is limited or when forecasting about new products or technology for which data may not exist. These techniques often involve judgment, intuition, and subjective evaluation. The Delphi method, specifically, is a structured communication technique that relies on a panel of experts who answer questionnaires in two or more rounds.

After each round, a facilitator provides an anonymous summary of the experts' forecasts and reasons. The experts are encouraged to revise their earlier answers based on the replies of other members of their panel. This process is repeated until the group reaches a consensus. Other options, such as time series analysis, regression analysis, and moving averages, are quantitative forecasting techniques that rely on numerical data.