Forecasting

Question 1

What is forecasting

Answer 1

he process of making predictions about future events or trends in the market, sales, consumer behavior, or other business-related areas, based on historical data and other relevant information. In order to aid planning

Question 2

Advantages of Forecasting

Answer 2

• Improved decision-making
• Better planning and allocation of resources
• Increased competitiveness
• Better risk management
• Increased efficiency
• improved financial performance

Question 3

Difference between qualitative forecasting and quantitative forecasting

Answer 3

• Qualitative forecasting involves using subjective judgment, expert opinions, and other non-numeric information to make predictions.
• Quantitative forecasting, on the other hand, involves the use of mathematical models and statistical techniques to make predictions based on historical data

Question 4

Structured methods of qualitative forecasting (Delphi Technique)

Answer 4

It involves gathering expert opinions through a structured and iterative process.

In a typical Delphi study, a group of experts is asked to provide their opinions about a future event or trend. These opinions are then compiled and shared with the group, who are then asked to revise their opinions based on the insights of their peers. This process is repeated several times until a consensus is reached or until the level of agreement stabilizes.

Question 5

Unstructured methods of qualitative forecasting (Brainstorming and Intuition)

Answer 5

• Brainstorming is a group problem-solving technique in which a group of people are encouraged to generate as many ideas as possible in a short period of time.
• Intuition forecasting involves relying on personal experience, gut feeling, and other informal sources of information to make predictions.

Question 6

Advantages and Disadvantages of Structured and Unstructured methods of forecasting.

Question 7

Calculate the range of quantitative financial forecasts including sales, costs, profits and cash flow

Question 8

What is meant by Seasonal and Cyclical variations

Question 9

How to calculate cyclical variation

Question 10

How seasonal and cyclical variations impact forecasting

Question 11

How to use correlations to analyse trends and make forecasts

Question 12

How to use Time Series Analysis

Question 13

How should a business respond to forecasts

Question 14

What is the importance of accurate forecasting to a business and its stakeholders

Question 15

Disadvantages of forecasting