A danger of forecasting discussed in the text is that
A) in most cases, the expense of collecting the necessary data exceeds the benefit.
B) the retrospective nature of forecasting provides little information about the future.
C) it can create legal problems for the firm if regulators discover the company is making forecasts.
D) managers may view uncertainty as black and white while ignoring important gray areas.

Question

Quizplus · Accepted Answer

A danger of forecasting is that managers may view uncertainty as black and white and ignore important gray areas. The problem is that underestimating uncertainty can lead to strategies that neither defend against threats nor take advantage of opportunities.

A Danger of Forecasting Discussed in the Text Is That