Illustrates the criteria for good forecasting method

Question

Illustrates the criteria for good forecasting method?

Answer 1

For a good forecasting method must satisfy the given criteria:

• Plausibility: This must be reasonable or believable.

• Simplicity: This must be simple and easy.

• Economy: This must be less costly.

• Accuracy: This must be as accurate as possible.

• Availability: Relevant data must be easily obtainable.

• Flexibility: This must be flexible to adopt needed changes.