Question

Correctly complete the following statement. We may be more likely to consider using qualitative forecasting techniques when Select one: a. a lot of historical (quantitative) demand data exists. b. we are faced with a short-term, operational decision-making problem. c. the relevant environment is likely to be quite stable (less variable) over the forecast horizon. d. the forecast horizon is long (e.g., more than three to five years).

Answer 1

b

Step-by-step explanation:

There are two types of forecasting method

1. Qualitative forecasting

2. Quantitative forecasting

Qualitative forecasting can be described as when subjective judgement or non quantifiable information in forecasting.

When is qualitative forecasting suitable ?

1. It is used when historical data in unavailable.
2. this method is suitable when it is predicted that future result would depart from what historical data may suggest

Advantages of Qualitative forecasting

1. it is flexible
2. It can be used when data available is ambiguous or unclear

Disadvantage of Qualitative forecasting

It is subjective.

Quantitative forecasting can be described as forecasting using historical data