Question

The qualitative forecasting method is based on opinion & intuition. True or False

Answer 1

Answer: TRUE

Explanation: Qualitative forecasting method are mostly based on survey polls, opinions of expert, etc.

While Quantitative deals with measurable numerical qualities, the qualitative deals with observation and opinions.

Qualitative forecasting method is a forecasting method that favours the intuitions and opinions of experts over numeric historic data. While the numeric data analysis will show that increase in production will lead to increase in sales for the coming year in a tobacco company , the experienced sales managers will let the company know that due to the recent law enforced by the government, there will be low sales in the following year. This will allow the company to either reduce their production rate or stay on the same production rate but not increase production.