What are the differences between quantitative and qualitativ

What are the differences between quantitative and qualitative forecasting techniques? Under what conditions is it appropriate to use a quantitative technique?

Solution

Quantitative forecasting requires hard data and number crunching, while qualitative forecasting relies more on educated estimates and expert opinions. Using a combination of both of these methods to estimate your sales, revenues, production and expenses will help you create more accurate plans to guide your business.

Quantitative forecasting tools are used to predict future figures and quantities such as sizes and lengths. Qualitative forecasting tools are used to predict what something in the future will be like in terms of things other than set figures. For instance, they could predict what type a future element will be; what color it will be; what the nature of it will be.

Forecasting is the practice of predicting something that will happen or come to be in the future. It is not, however, like fortune telling or other practices carried out by the likes of psychics. Forecasting relies on solid evidence to predict future events. It is used in a number of areas today, most commonly in the process of predicting the future weather and the imminent economic climate.