Understanding Forecasting Methods

Forecasting methods are broadly categorized into two types:

• Qualitative Methods: Rely on subjective inputs like expert opinions, surveys, and intuition. Useful when historical data is scarce or irrelevant.
• Quantitative Methods: Utilize historical numerical data and statistical models to predict future outcomes.

Analysis of Forecasting Options

Let's analyze each option provided:

• Linear Regression: This is a quantitative technique that models the relationship between variables using a linear equation based on historical data.
• Weighted Moving Average: This is a quantitative method that calculates a forecast based on historical data points, assigning different weights to each point.
• Delphi: This is a qualitative forecasting technique that involves a structured process of gathering and consolidating judgments from a panel of experts through multiple rounds of questionnaires.
• Exponential Smoothing: This is a time-series forecasting method, a type of weighted average, making it a quantitative technique.

Identifying the Qualitative Method

Based on the analysis, the Delphi method is the only qualitative forecasting technique among the options. It relies on expert judgment rather than historical numerical data.