Question

It is important to question the reliability of forecasts because

- uncertainty is black and white, and therefore the gray areas are unimportant.

- if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity.

- the growth new industries, such as that of telecommunications, cannot be predicted.

- underestimating uncertainty can lead to good competitive strategies.

Answer 1

Answer: The correct answer is "- if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity.".

Explanation: It is important to question the reliability of forecasts because if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity.