Identify a benefit of applying statistical forecasting methods.
A) They are particularly useful in dynamic environments.
B) Under the right conditions, they provide predictions that are much more precise than judgmental methods.
C) They are particularly useful in predicting important events that have no historical precedent.
D) They are invariably better than the "best guesses" of experts.
E) They can be used by organizations as a substitute for relying on the subjective judgments of experts.

Question

Quizplus · Accepted Answer

Statistical methods capture historic trends in a company's demand for labor. Under the right conditions, these methods predict demand and supply more precisely than a human forecaster can using subjective judgment. But many important events in the labor market have no precedent. When such events occur, statistical methods are of little use.

Identify a Benefit of Applying Statistical Forecasting Methods