Question

Identify and describe the two major classes of business forecasting methods?

Answer 1

The two major classes of business forecasting methods are time series methods and causal methods. Time series methods use historical data to forecast future values, while causal methods focus on identifying cause-and-effect relationships between variables.

Step-by-step explanation:

The two major classes of business forecasting methods are time series methods and casual methods.

1. Time series methods use historical data to forecast future values. These methods assume that future patterns will follow the same patterns as observed in the past. Examples of time series methods include moving averages, exponential smoothing, and ARIMA models.
2. Causal methods focus on identifying cause-and-effect relationships between variables to make forecasts. These methods use explanatory variables, such as economic indicators or consumer behavior, to predict future outcomes. Examples of causal methods include regression analysis and econometric models.