A weakness of the Qualitative forecasting process is that: Forecasts are based o
ID: 358997 • Letter: A
Question
A weakness of the Qualitative forecasting process is that:
Forecasts are based on the knowledge of experts
Can bias the forecast and reduce the forecast accuracy
Unable to predict trends
Based on the analysis of mathematical data
Can incorporate the latest changes in the environment
Forecasts are based on the knowledge of experts
Can bias the forecast and reduce the forecast accuracy
Unable to predict trends
Based on the analysis of mathematical data
Can incorporate the latest changes in the environment
Explanation / Answer
B, Can bias the forecast and reduce the forecast accuracy
Qualitative forecasting is used to check the customer demand using given information. In this procedure previous demand patterns are also analyzed. But it is hard to remove the forecaster’s personal bias. For example a person who is pessimistic, will develop a forecast which is very pessimistic. And it will lead to less accurate forecast.