Combination forecasting is most effective when the techniques being combined contribute different kinds of information to the forecasting process.

Question

Quizplus · Accepted Answer

Combination forecasting can be more effective when different techniques are combined as they bring different perspectives and information to the table, helping to reduce the uncertainty and potential biases in the forecasting process. For example, combining qualitative and quantitative forecasting methods can provide a more comprehensive understanding of the factors driving future outcomes, while combining time-series and causal forecasting can help to account for both the historical trends and external factors that impact the forecasted variable.

Combination Forecasting Is Most Effective When the Techniques Being Combined