Question

4. It is fair to say that a qualitative forecasting model is better for: A. Functional...

4. It is fair to say that a qualitative forecasting model is better for:

A. Functional products with past sales history

b. Innovative products that are new to the market

c. Products with stable sales history.

d. Products whose sales are increasing over time.

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Answer #1

Qualitative forecasting model is not based on historical data. Instead of numerical analysis, qualitative forecasting models takes into account the opinions of experts. These models relies on intitution.

This model is used generally in case of new products as past data for these products is not at all available and thus qualitative model works best for them.

So, it is fair to say that a quanlitative forecasting model is better for innovative products that are new to the market.

The correct answer is the option (b).

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