Question

Qualitative forecasting methods are most appropriate when

A. forecasting new products when there is little historical data available.
B. there is good historical data available.
C. experts do not have critical market intelligence.
D. forecasting demand into the near future.
E. trying to achieve a high level of detail.

Answer 1

Qualitative forecasting is best used for new products with little historical data, relying on expert opinions and market research instead of past trends.

Step-by-step explanation:

Qualitative forecasting methods are most appropriate when forecasting new products when there is little historical data available. These methods are useful in situations where buyers and sellers are less than 100% certain about the qualities of what they are buying or selling. When historical data is scarce or non-existent, qualitative forecasting relies on expert opinions, market research, and comparative analysis to predict future trends. In contrast, when good historical data is available, quantitative methods tend to be more effective as they can analyze past trends to predict future outcomes. Qualitative methods can also incorporate insights from interviews, focus groups, and content analysis to develop forecasts.