A danger of forecasting discussed in the text is that
A) in most cases, the expense of collecting the necessary data exceeds the benefit
B) forecasting's retrospective nature provides little information about the future
C) managers may view uncertainty as "black and white" while ignoring important "grey areas"
D) it can create legal problems for the firm if regulators discover the company is making forecast

Question

Quizplus · Accepted Answer

Forecasting can lead managers to oversimplify uncertainty, treating it as a binary concept rather than recognizing the nuanced "grey areas" that often exist. This can result in inadequate preparation for a range of potential future scenarios.

A Danger of Forecasting Discussed in the Text Is That