Forecasting

Instruction: For Question 1, you can easily find the answers after reading the book. For Question 2, please first be familiar with how to use the equations given in the book. Particularly, for I(b), keep in mind that the largest weight is assigned to the most recent data value, the second largest weight is assigned to the second most recent data value, the third largest weight is assigned to the third most recent data value. For II, you have to calculate MADs for all three forecasting techniques in I, then the one with the smallest MAD generates the most accurate forecasts.

1. How to differentiate qualitative methods and quantitative methods in forecasting? What methods are in the quantitative category?