This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Fundamental Forecasting Approaches: o Judgmental Human knowledge; based on opinion Potential bias & reaction to immediate events or experience Salesperson surveys (expert opinion) Delphi approach (group approach) o Relational Cause & effect modeling Purchasing manager surveys o Experimental Generally used for brand new product (no past data) Test markets o Time Series Use past data to build a model & observe what’s happening over periods of time More reliable forecast Two types of info: • Pattern forecast • Noise ignore (random variation in data that cannot be explained) Can categorize into seasonality, trend, & noise Seasonality over several years = cycle D(t) = (L+Tt)[S(t)]+r *r = random/error; T = trend...
View Full Document
This note was uploaded on 02/01/2012 for the course ECONOMICS 421 taught by Professor Landon-lane during the Spring '12 term at Rutgers.
- Spring '12