It Would Be Most Appropriate to Combine a Judgment Approach

question 45

Multiple Choice

It would be most appropriate to combine a judgment approach to forecasting with a quantitative approach by:

• A) having a group of experts examine each historical data point to determine whether it should be included in the model.
• B) combining opinions about the quantitative models to form one forecasting approach.
• C) adjusting a forecast up or down to compensate for specific events not included in the quantitative technique.
• D) developing a trend model to predict the outcomes of judgmental techniques in order to avoid the cost of employing the experts.

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Definitions:

Broaden-and-build Theory

A psychological theory suggesting that positive emotions expand one’s awareness and encourage novel, varied, and exploratory thoughts and actions.

Affect-as-information Hypothesis

A theory suggesting that individuals use their emotional states as information in making judgments and decisions.

Emotionally Affected

Experiencing an impact on one's mood or feelings due to an external event, situation, or interaction.

Predict

The act of stating or estimating that a specified event will happen in the future based on existing data or patterns.