Question

A sales organization creates a new sales forecast by simply taking the average of demand forecasts that each sales manager generated individually. What type of subjective forecasting approach best describes this?

Answer 1

forecast with consensus building

Step-by-step explanation:

• As far as the situation is concerned, the new sales forecast is created by each sales manager using a reference method individually to create an average of several other demand forecasts.
• The combination of forecast increases the likelihood of accuracy when the two models correlate with each other.
• Therefore, reference combinations are often used to improve forecast accuracy. A linear combination of two or more predictors gives more accurate instructions than using a single predictor.