A small company that manufactures rubber boots is selecting a method to forecast demand for the next 10 years. The company recently expanded its facilities, doubling its capacity. Which of the following forecasting methods would be preferred?

A. Qualitative
B. Simple exponential smoothing
C. Econometric
D. Box-Jenkins

A) Qualitative

Explanation:

Qualitative forecasting relies on expert judgment (AKA experience) instead of numerical analysis. Qualitative forecasting will be carried out by experienced employees and they will use their own working experience to calculate any possible future outcomes. This type of forecasting is specially useful for long term investments that are difficult to quantify using numerical analysis.

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