What is the difference between qualitative and quantitative forecasting?

What is the difference between qualitative and quantitative forecasting?

Qualitative forecasting relies on expert opinions and subjective judgment, while quantitative forecasting uses historical data and statistical methods.

Can you give me examples of each type?

Sure! An example of qualitative forecasting is a market research survey, while a quantitative example is using time series analysis on sales data.

Which method is more accurate?

It depends on the context. Quantitative methods are generally more accurate with sufficient data, while qualitative methods can capture insights in uncertain situations.

When should I use qualitative forecasting?

Use qualitative forecasting when data is scarce, or when you're exploring new markets or products where historical data isn't available.

What are the limitations of each method?

Qualitative forecasting can be biased and subjective, while quantitative forecasting may not account for sudden market changes.