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
1. Explain how the aggregate supply curve for the entire economy can be derived under; i. Classical assumption ii. Keynesian assumption 2. Explain how equilibrium can be a

pooling in insurance

You have decided to sell some goods at a local music festival. You have hired a sales stand for $500. Your cost per item is $3 and you will sell each item for $5. When you did your

Question : (a) Using a simple example, diffrence between inter - industry trade and intra - industry trade? (b) Illustrate the reasons for the existence of external economie

In the table below are given the output (X), T.C., and Price for a firm. Complete the following table, and then answer the questions at the bottom of the table.   X T.C P=A.R



Around 2007, the world copper price was $2.00 per pound and 12 million metric tons per year was the quantity transacted. A) Assume copper’s demand elasticity is -.5 and supply elas


what is the effect on the market for dvd players if the price of dvd rises