Prepared by :

Dr. K. BARANIDHARAN
PROF.MBA
SRI SAIRAM INSTITUTE OF TECHNOLOGY
CHENNAI

Sri Sairam Institute of Technology 1
Engineering
Economics& Financial
Accounting
2 10 August 2014
Criteria in good forecasting
Criteria for good forecasting.
Joel Dean lays down the following criteria of
good forecasting method:-
Accuracy :- forecast must be accurate as far as
possible. Its accuracy must be judged by
examining the past forecast with present
situation.
Plausibility :- it implies managements
understanding of method used for forecasting.
It is essential for a correct interpretation of the
results.
Simplicity :- a simpler method is always more
comprehensive than a complicated one.
Economy :- it should yield quick results. A
time consuming method may delay the
decision making process.
Quickness :- it should yield quick results. A
time consuming method may delay the
decision making process.
Flexibility : - not only the forecast is to be
maintained up to date there should be
possibility of changes to be incorporated in
the relationships entailed in forecast
procedure, time to time.