Answer to Question #142424 in Finance for faisal

Question

What is qualitative forecast?

Answer 1

Qualitative forecast is an estimation methodology that is based on expert judgement and opinions rather than on numerical analysis. Thus, it is dependent on the opinions and knowledge of highly qualified and experienced experts for the prediction of future outcomes.

Qualitative forecasts demands unbiased and logical judgements for quality and reliable estimates. They are best for long-term forecasts such as forecasts for profit margins and new business ventures. The estimates are common where there is absence of historical data for numerical analysis.

Qualitative forecasts include:

1. Excecutive opinions

2. Sales force polling

3. Delphi techniques

4. Consumer surveys