In which of the following situations is the use of qualitative forecasts most appropriate?
A) A marketing manager has to forecast monthly sales for the coming financial year based on the past monthly sales figures.
B) A TV network executive has to forecast viewership figures for a daily talk show based on historical data from the past on a similar show on a rival network.
C) An economist has to forecast credit flow resulting from a newly introduced stimulus package by the federal government.
D) A country's annual rate of growth for the upcoming year has to be estimated based on the annual GDP data from the last 20 years.

Question

Quizplus · Accepted Answer

Qualitative forecasts are most appropriate when there is little or no historical data available to make predictions. In this case, the economist is dealing with a newly introduced stimulus package, which makes it difficult to rely solely on historical data. Therefore, using qualitative methods such as expert opinions, surveys, and market research may be more appropriate in order to make an accurate forecast. Choices A, B, and D involve historical data, which makes quantitative forecasting methods such as time-series analysis and regression analysis more appropriate.

In Which of the Following Situations Is the Use of Qualitative