In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of
A)overestimation of uncertainty.
B)excellent forecasting.
C)underestimation of uncertainty.
D)good prediction skills.

Question

Quizplus · Accepted Answer

In 1977, one of the colossal underestimations in business history occurred when Kenneth H. Olsen, president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. The explosion in the personal computer market was not easy to detect in 1977, but it was clearly within the range of possibilities at the time. Environmental forecasting involves the development of plausible projections about the direction, scope, speed, and intensity of environmental change. Its purpose is to predict change.