Question

Identify and describe three classes of qualitative business forecasting methods?

Answer 1

Qualitative business forecasting methods include judgmental methods, time-series methods, and simulations.

Step-by-step explanation:

There are three classes of qualitative business forecasting methods:

1. Judgmental Methods: In this method, experts use their experience, knowledge, and intuition to make forecasts. Examples include executive opinion, Delphi method, and market research.
2. Time-Series Methods: This method analyzes past data to identify patterns and trends that can be used to forecast future values. Examples include moving averages, exponential smoothing, and autoregressive integrated moving average (ARIMA).
3. Simulations: Simulations involve creating a model of a business system and running simulations to estimate the likelihood of different outcomes. Monte Carlo simulation and system dynamics modeling are examples of simulation methods used in business forecasting.