What Challenges are Associated with Long Term Forecasting?
Long term forecasting is inherently challenging due to several factors:
Uncertainty: The further into the future one tries to predict, the greater the uncertainty and the higher the likelihood of unforeseen events. Data Limitations: Reliable and relevant data may be scarce, especially for long-term predictions, making it difficult to create accurate forecasts. Changing Variables: Economic, political, technological, and social factors can change rapidly, affecting the accuracy of long term forecasts. Bias: Personal biases and assumptions can influence the forecasting process, leading to skewed predictions. Complexity: The interplay of multiple variables and their potential impact on the business adds complexity to the forecasting process.