Difference between qualitative and quantitative forecasting methods
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Quantitative method of forecastinguses numerical facts and historical data to predict upcoming events. The two main types of quantitative forecasting used by business analysts are the explanatory method that attempts to correlate two or more variables and the time series method that uses past trends to make forecasts.
Qualitative method of forecastingis often employed where the key trends or developments are hard to capture or where such data is not available. In such a case business analysts used subjective information such as intuition or informed opinion for forecasting the future results. This type of forecast is essential for new products where no historical information is available and primarily used for medium & long term planning. Qualitative techniques include the use of information gathered from Expert opinion, Market research, Focus groups, Historical analogy, Delphi method and Panel consensus.
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Qualitative method of forecastingis often employed where the key trends or developments are hard to capture or where such data is not available. In such a case business analysts used subjective information such as intuition or informed opinion for forecasting the future results. This type of forecast is essential for new products where no historical information is available and primarily used for medium & long term planning. Qualitative techniques include the use of information gathered from Expert opinion, Market research, Focus groups, Historical analogy, Delphi method and Panel consensus.
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