Question

When is it appropriate to use qualitative forecasting methods?
Please offer examples.

Answer 1

Qualitative forecasting methods are used when there is limited historical data or uncertainty. Examples include market research, focus groups, and the Delphi method.

Step-by-step explanation:

Qualitative forecasting methods are appropriate when there is limited historical data available or when the future is uncertain and difficult to predict using quantitative methods. These methods involve gathering opinions, expert judgments, and subjective inputs to make predictions. Examples of when qualitative forecasting methods are used include:

• Market research surveys to determine customer preferences and attitudes
• Focus groups to gather opinions and feedback on new products or services
• Delphi method, which involves collecting and aggregating opinions from a group of experts to make predictions