Which method is NOT typically used for quantitative forecasting?

Which method is NOT typically used for quantitative forecasting?

• A. Moving average
• B. Causal model
• C. Subjective model
• D. Exponential smoothing

Answer: (C)

Quantitative forecasting relies on mathematical models and statistical techniques to predict future events based on historical data. The method identified as subjective modeling is not rooted in numerical data analysis; instead, it relies on opinions, insights, and experience rather than statistical methodologies. This places it outside the realm of quantitative forecasting. On the other hand, the moving average method employs historical data to create averages that can help forecast future values, making it quantitative. Similarly, the causal model establishes relationships between variables to predict outcomes based on data analysis, and exponential smoothing uses historical data to forecast by giving different weights to past observations. All these methods are grounded in quantitative analysis, while the subjective model is based on qualitative assessments, distinguishing it from the other options.

Quantitative forecasting relies on mathematical models and statistical techniques to predict future events based on historical data. The method identified as subjective modeling is not rooted in numerical data analysis; instead, it relies on opinions, insights, and experience rather than statistical methodologies. This places it outside the realm of quantitative forecasting.

On the other hand, the moving average method employs historical data to create averages that can help forecast future values, making it quantitative. Similarly, the causal model establishes relationships between variables to predict outcomes based on data analysis, and exponential smoothing uses historical data to forecast by giving different weights to past observations. All these methods are grounded in quantitative analysis, while the subjective model is based on qualitative assessments, distinguishing it from the other options.