The major strengths and weaknesses of analytic and non-analytic forecasting.
Compare and contrast the major strengths and weaknesses of analytic and non-analytic forecasting. Provide one example of each method being used in a real-world scenario to support your answer. 300 words
In contrast, non-analytic forecasting relies heavily on human judgment using subjective evaluation techniques like interviews, focus groups, surveys etc., rather than relying solely on numerical evidence from the past. This method has several advantages when compared with analytical approaches due mainly to its flexibility and ability to address uncertain scenarios; since it does not rely exclusively on existing data trends it can be adapted quickly in response to changing conditions without having to develop different models each time. The main disadvantage of non-analytical forecasting is its lack of accuracy and reliability compared with quantitative analytic methods which have more rigorous protocols for verifying predictive outcomes.
An example of analytic forecasting might include a retail store chain analyzing sales trends over the last five years in order anticipate potential profits during upcoming quarters; whereas an example of non-analytical forecasting could involve conducting customer surveys or focus groups designed to gain insights into consumer preferences around product offering decisions over the next year.