...BUSI 620 QCT 3 --6.7 points each for a total of 80 points Salvatore’s chapter 6: a. Discussion Questions: 1,7, and 15 1. Forecasting for most businesses means gathering historical information and building an estimate or prediction of future events based on the analytical actions of the past. It is important to businesses and other enterprises because it becomes a statistical map for where the organization could go and helps to identify where areas of weakness may be in order to create a new or different pathway to increase performance. There are several types of forecast, qualitative, time series analysis, causal relationship, simulation, and barometric methods. Firms must examine what form of business analytics they need to solve their problems whether it is time data, research data, or trend analysis. 7. Exponential smoothing is the best technique in forecasting as it examines all averages and examines the average of the actual and forecasted values. We have to look at what is required average to determine which smoothing technique is better that will be based on the need of the forecast for the business. Regression Approach would probably be the best to forecast the values of a time series that contains a secular trend as well as a strong seasonal and random variations. 15. It is still useful to pursue forecasting due to the fact that it can provide a directional for time trends or trend analysis that businesses need to learn where...
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