Question

What is one of biggest challenges to overcome in new product forecasting?

• Selecting the best quantitative forecasting method.
• Identifying supply chain participants.
• Lack of historical data.
• Determining which product life cycle is appropriate.

            Forecast preparation should always include thorough research and/or personal judgments based on:

• economic variables
• practical experience
• business variables
• computer results

Naïve forecasts are based solely on what?

• The S-shaped market-penetration curve.
• The application of time-series analysis yields.
• The product life cycle.
• The most recent observation of the variable of interest.

Answer 1

Answer 1 - correct option is B

Reason - lack of historical data is one of the biggest challenge as lack of historical data creates a time pressure which results is errors in forecasting process

Answer 2 - correct option is A

Reason - judgement based on Economic variables good you the accurate results which will give you positive result in forecasting preparation

Answer 3 - correct option is D

Reason - naive forecast is based on most recent observation of variable of interest