Question

Which of the following principles are important to keep in mind when establishing a forecasting process within your organization: A) Convergence: Allowing individuals within your organization to discuss and brainstorm together as a group before submitting their forecasts to ensure that they have as much relevant information as possible. B) Incentives: Ensuring that individuals are incentivized to report their forecast accurately. C) Diversity: Invite a diverse set of individuals from across the company to participate in the forecasting process.

Answer 1

Answer: A, B, and C

Step-by-step explanation:

When forecasting, it is important that the cognitive resources of a diverse range of people are used. This is why it is important that a diverse set of individuals in the organization are allowed to discuss and brainstorm together as a group so as to come up with the best forecasts.

Individuals should also be incentivized to forecast accurately. These incentives can either reward accuracy or punish overforecasting such that the individuals try their best to forecast accurately.