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Forecasting Models
1. Qualitative Model: Methods are based on the opinions of the educated people.
They are:
(a) Delphi method: Forecast is developed by a panel of experts who
anonymously answer a...Forecasting Models
1. Qualitative Model: Methods are based on the opinions of the educated people.
They are:
(a) Delphi method: Forecast is developed by a panel of experts who
anonymously answer a series of questions; responses are fed back to
panel members who then may change their original responses. However,
it is very time consuming and expensive.
(b) Market research: Forecast is developed by panels using questionnaires,
test markets, surveys, etc.
(c) Product life-cycle analogy: Forecast is based on life-cycles of similar
products, services, or processes already existing in the market.
(d) Expert judgement: Forecast is based on opinion given by management,
sales force, or other knowledgeable persons.
2. Time Series Model: Based on analysis of historical data as a set of observations
measured at successive times or over successive periods. They are:
(a) Moving averages: Arithmetic average of a given number of past data
points.
(b) Exponential smoothing: Weighted... View Full Attachment Show more