Question

"Forecasting is both an art and a science." Discuss with particular reference to Panel Consensus and Econometric Method.

Answer 1

Forecasting:
Prediction is a technique that applies past experiences to predict future outcomes. It is a business tool that companies use to increase market knowledge and determine budget allocation for projected expenditures.

Prediction is both art and science in light of the fact that science uses a system of prediction and art that exists to apply strategies. Team consensus refers to a technique used by a company, group, or committee to forecast sales estimates. Standard methods are causal or explanatory forecast models.

Answer and explanation:
Consensus expectations refer to drawing ideas from different people in the company and reaching agreement through consensus. It involves gathering experts from various departments of the organization and taking opinions from each representative. This procedure makes prediction an art, as it involves human intervention and contributions.

Econometric methods refer to the methods applied to determine the future needs of the institution through the use of statistical models and economic theories. The method attempts to determine the relationship between factors such as consumer spending and gross national product. This law makes science prediction because it involves scientific methods for measuring the likelihood of future needs.