When managers are asked to make forecasts on the basis of few previous observations, they should consider non-regression-based forecasting methods.

Question

Quizplus · Accepted Answer

When few previous observations are available, non-regression-based forecasting methods like qualitative or judgmental techniques may be more appropriate. Regression-based methods require a larger sample size and assume a linear relationship between variables, which may not hold true in some cases.

When Managers Are Asked to Make Forecasts on the Basis