Criteria of a good forecasting method, Microeconomics

Criteria of a Good Forecasting Method:

1. Simplicity : and Ease of Comprehension: Management must be able to understand and have confidence in the techniques used complicated mathematical and statistical techniques may be avoided.

2. Economy: Cost must be weighed against the importance of the forecast to the operation of the business. The criticism should be the economic consideration of balancing the benefits from increased accuracy against the extra cost of providing the improved forecasting.

3. Availability : Techniques should given quick results and useful information.

4. Durability: Durability of the forecasting power of a demand and function depends on reasonableness and simplicity of functions fitted.

5. Accuracy : Sales forecasting is the basis of marketing planning and therefore sales forecasts should be as much accurate as possible.

Posted Date: 3/30/2013 1:57:42 AM | Location : United States







Related Discussions:- Criteria of a good forecasting method, Assignment Help, Ask Question on Criteria of a good forecasting method, Get Answer, Expert's Help, Criteria of a good forecasting method Discussions

Write discussion on Criteria of a good forecasting method
Your posts are moderated
Related Questions
How the above would apply to non-renewable resources such as oil. This has general applicability to any competitive market. The issue here is that potential supply has a finite

The Money Multiplier is explained below: If you see carefully, the money multiplier is nothing but an inverse of a reserve ratio. Therefore, we can write MM = 1/rr, where rr is

using the indifference curve approach explain why the demand curve slope downwards from left to right...... is there any exceptions?

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in terms of pr

how is monopoly different from opligopoly

Factors of Production Factors of production are the resources that are utilized to manufacture goods and services: 1. Natural resources: The things developed by acts of n

How to use Demand and Supply tools to analyze the case of the Egyptian labor market?

Which of the following is a free good? Fresh water, forests in the northwestern United States, the advice of economists, or none of the above?

Question (a) Describe clearly the three concepts of elasticity of demand. Use appropriate examples and diagrams to support your answer. (b) Consider you have been appointed

explain the main criteria for classifying firms into industries.which criteria serve the better and why?