PHILIPPINE WOMEN’S UNIVERSITY

TAFT, MANILA

EXPANDED TERTIARY EDUCATION EQUIVALENCY

AND ACCREDITATION PROGRAM (ETEEAP)
SECOND TRIMESTER, SY 2020-2021
BUSINESS STATISTICS – CLUSTER 4
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TOPIC – 8

BUSINESS FORECASTING

The techniques of forecasting can be grouped under:-

1. Qualitative Techniques
2. Quantitative Techniques
3. Time Series Techniques of Forecasting
4. Causal Modeling
5. Technological Forecasting.

Some of the qualitative techniques of forecasting are:-

(i) Market Research Techniques

(ii) Past Performance Technique
(iii) Internal Forecast
(iv) Deductive Method
(v) Direct vs. Indirect Methods
(vi) Jury of Executive Opinion
(vii) Historical Analogy
(viii) Delphi Technique
(ix) Market Survey
(x) Judgmental Forecasting
(xi) Sales Force Composite Method
(xii) User’s Expectation Method
(xiii) Brain Storming.
Following are the important quantitative techniques used for the
purpose of forecasting:-

(i) Business Barometers Method

(ii) Trend Analysis Method
(iii) Extrapolation Method
(iv) Regression Analysis Method
(v) Economic Input Output Model Method
(vi) Econometric Model
(vii) Expectation of Consumer
(viii) Input and Output Analysis.

The time series techniques of forecasting are:-

i. Trend Projection
ii. Moving Average
iii. iii. Exponential Smoothing.

The causal modeling techniques of forecasting includes:-

i. Regression Analysis
ii. ii. Econometric Models
iii. iii. Economic Indicators.

The technological forecasting techniques are:-

i. Cross-Impact Analysis
ii. Morphological Analysis
iii. Substitution Effect.

Some of the other techniques of forecasting are:-

1. Direct Method
2. Indirect Method
3. Joint Opinion Method
4. Scientific Analysis
5. Similarity Events Method
6. Survey Method
7. Sales Person’s Opinion.

QUESTIONS:

In the recent years, large numbers of techniques of forecasting have

been evolved to handle different types of forecasting problems. Each
technique has its special use and the manager has to select that which
one is most suitable for application to his problem.

1. Discuss the factors to be considered for making the choice of

techniques for forecasting.
2. Explain the different forecasting techniques. Cite examples.