1. If one forecasting technique were more accurate than another technique when a
ID: 418263 • Letter: 1
Question
1. If one forecasting technique were more accurate than another technique when applied to past data, why would the first technique not necessarily be preferred for use in the future?
2.Does a high correlation between an independent and a dependent variable prove the independent variable has any influence over the dependent variable? Why or why not?
3. Quantitative forecasting focuses on past data to project future conditions. Even if this focus produces accurate forecasts, what might be dangerous about this approach?
Explanation / Answer
Forecasting is a technique that is used to predict outcome of any event. Hence accuracy is important in forecasting since it will aid the management in taking important decisions. So if one forecasting technique is better than a previous one, the organizations will always tend to use the one that is accurate as it will give best results.
Hence the technique which is less accurate will not be preferred against the technique which is more accurate.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.