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Question 349 - CSCP discussion

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Which of the following forecasting techniques is most appropriate when data is scarce?

A.
Seasonal analysis
Answers
A.
Seasonal analysis
B.
Computer simulation
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B.
Computer simulation
C.
Delphi method
Answers
C.
Delphi method
D.
Linear regression
Answers
D.
Linear regression
Suggested answer: C

Explanation:

When data is scarce, the Delphi method is the most appropriate forecasting technique. This method involves:

Expert Judgment: Gathering insights and opinions from a panel of experts through multiple rounds of surveys.

Iterative Process: Experts revise their responses based on feedback until a consensus is reached.

Scarcity of Data: Ideal for situations where historical data is limited or unavailable, relying instead on expert knowledge and experience.

'Forecasting: Principles and Practice' by Rob J Hyndman and George Athanasopoulos

'Business Forecasting' by John E. Hanke and Dean W. Wichern

asked 16/09/2024
Jarod Simmons
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