Forecasting models can be divided into three groups. They are: a. time series, optimization, and simulation methods b. judgmental, random, and linear methods c. linear, non-linear, and extrapolation methods d. judgmental, extrapolation, and econometric methods

Question

Neveah Bullock

Social Studies

30 September, 16:49

Forecasting models can be divided into three groups. They are: a. time series, optimization, and simulation methods b. judgmental, random, and linear methods c. linear, non-linear, and extrapolation methods d. judgmental, extrapolation, and econometric methods

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Answers (2)

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Jose Mccoy · Answer 1

The correct answer is letter D

As a demand request for auxiliary products and services as decision making, providing basic information for planning and controlling areas of an organization, such as, for example, finance and accounting, engineering and research, production, distribution and logistics, human resources, marketing.

If the forecast method is Calculation from the previous year, the demand forecast is identical to the Moving Average, except that the number of periods to be taken into account is different. Where: Average demand is calculated as: write-off of the actual item (previous period) / seasonal factor (previous period)

Toby Sullivan · Answer 2

d. judgmental, extrapolation, and econometric methods

Explanation:

Forecasting models are tested frameworks or mathematical models that are used in predicting future outcomes and they are divided into three major groups; judgmental, extrapolation, and econometric methods.

Judgmental forecasting is employed when there is a lack of historical data, it incorporates intuitive judgement, opinions and subjective probability estimates. Extrapolation forecasting on the other hand is based on previously existing data, this type of forecasting asserts that previous trends from data will be replicated in the future.