The judgment methods of forecasting are to be used for purposes of:
A) making adjustments to quantitative forecasts due to unusual circumstances.
B) generating data for use in time-series approaches.
C) providing the calculations necessary for quantitative forecasts.
D) calculating the forecast error for quantitative methods.

Question

Quizplus · Accepted Answer

Judgment methods of forecasting, such as the Delphi method or the sales force composite, involve gathering expert opinions or input from knowledgeable individuals. These methods can be useful in making adjustments to quantitative forecasts when there are unusual circumstances, such as a sudden change in market conditions or the introduction of a new product. Therefore, option A is the best choice. Option B is incorrect because judgment methods do not generate data for time-series approaches, while option C is incorrect because they do not provide the calculations necessary for quantitative methods. Option D is also incorrect because judgment methods do not calculate forecast error.

The Judgment Methods of Forecasting Are to Be Used for Purposes