Name two forecasting methods.

Name two forecasting methods.

• A. Time-series analysis and judgmental forecasting.
• B. Qualitative interviews and marketing surveys.
• C. Finite planning and scenario analysis.
• D. Statistical process control and trend analysis.

Answer: (A)

Forecasting uses different approaches to project future demand. Time-series analysis looks at historical data to identify patterns such as trends, seasonality, and cycles, and then projects those patterns forward to estimate what will happen next. Judgmental forecasting relies on the experience and intuition of experts when data is incomplete, new products are involved, or market conditions are changing in ways not reflected in the numbers. These two are distinct forecasting methods—one quantitative and one qualitative—so they pair well as two methods for predicting the future. The other options mix tools and concepts that aren’t forecasting methods by themselves: qualitative interviews and marketing surveys are research techniques used to gather market information rather than formal forecasting methods; finite planning is a planning approach and scenario analysis explores possible futures but isn’t a standard two-method forecasting pairing; statistical process control is a quality-control tool, and trend analysis is a forecasting technique but is typically categorized within time-series methods rather than paired with another forecasting method in that option.

Forecasting uses different approaches to project future demand. Time-series analysis looks at historical data to identify patterns such as trends, seasonality, and cycles, and then projects those patterns forward to estimate what will happen next. Judgmental forecasting relies on the experience and intuition of experts when data is incomplete, new products are involved, or market conditions are changing in ways not reflected in the numbers. These two are distinct forecasting methods—one quantitative and one qualitative—so they pair well as two methods for predicting the future.

The other options mix tools and concepts that aren’t forecasting methods by themselves: qualitative interviews and marketing surveys are research techniques used to gather market information rather than formal forecasting methods; finite planning is a planning approach and scenario analysis explores possible futures but isn’t a standard two-method forecasting pairing; statistical process control is a quality-control tool, and trend analysis is a forecasting technique but is typically categorized within time-series methods rather than paired with another forecasting method in that option.