Under what circumstances should management generally consider utilizing qualitative forecasting techniques?
Under what circumstances should management generally consider utilizing qualitative forecasting techniques?
Qualitative forecasting techniques are generally used when there is a need for strategic-level forecasts, particularly in situations where historical data is insufficient, unavailable, or irrelevant. These methods rely on expert opinions, market research, and other subjective inputs, making them suitable for long-term planning and strategic decision-making where quantitative data may not be reliable or applicable.
Answer is C. Quantitative analysis extrapolates historical demand into potential future demand, based on the idea that historical demand is a good indicator of future demand.
quantitative forecasting techniques are an approach to forecasting where historical demand data is used to project future demand. Extrinsic and intrinsic techniques are typically used.
Qualitative forecasting methods are subjective, based on the opinion and the judgment of consumers and experts; they are only appropriate when past data is not available. Examples of qualitative forecasting methods are, for instance, Informed opinion and judgment, Delphi method and Market research-Agreed C
Qualitative data is also used when there is not sufficient data (C) is the answer