Question

It would be most appropriate to combine a judgment approach to forecasting with a quantitative approach by:

a. having a group of experts examine each historical data point to determine whether it should be included in the model.
b. developing a trend model to predict the outcomes of judgmental techniques in order to avoid the cost of employing the experts.
c. combining opinions about the quantitative models to form one forecasting approach.
d. adjusting a forecast up or down to compensate for specific events not included in the quantitative technique.

Answer 1

Answer: The most appropriate way to combine a judgment approach to forecasting with a quantitative approach is by adjusting a forecast up or down to compensate for specific events not included in the quantitative technique. This is option d.

Explanation: Option a is incorrect because it would be too time-consuming and expensive to have a group of experts examine each historical data point.

Option b is incorrect because developing a trend model to predict the outcomes of judgmental techniques would not be effective since judgmental techniques are based on subjective opinions rather than objective data.

Option c is incorrect because combining opinions about the quantitative models would not necessarily lead to a more accurate forecast.

Therefore, option d is the best way to combine a judgment approach to forecasting with a quantitative approach.

Hope this helps, and have a great day!