BUS307 Week 3 – Discussion Forum 1

 

Forecasting Models [WLOs: 1, 2, 3] [CLOs: 2, 4, 5]

Prior to beginning work on this discussion forum, read Chapter 9: Forecasting.

From Chapter 9, answer Discussion Question 1: Which forecasting techniques do you think should be used in calculating fuel prices? Time series models? Causal models? Qualitative models? In causal modeling, what types of independent variables might be used? Justify your answer.

BUS307 Week 3 – Discussion Forum

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SMART ANSWER

 

Hi Class,

Quantitative forecasting models use measurable, historical data to generate forecasts while qualitative forecasting techniques are based on intuition or informed opinion” because hard data does not exist (Bozarth & Handfield, 2016, Chapter 9). Time series and casual models are the two major types of quantitative forecasting models with the most effective technique in forecasting fuel prices being the time series quantitative approach.