What Techniques are Used in Long Term Forecasting?
Several techniques are commonly used in long term forecasting, each with its own strengths and limitations:
Trend Analysis: This involves analyzing historical data to identify patterns and trends that can be projected into the future. Econometric Models: These models use statistical methods to forecast future economic conditions based on historical relationships between variables. Delphi Method: A consensus-based approach that gathers expert opinions to predict future events and trends. Scenario Planning: This technique involves creating multiple plausible future scenarios and assessing their potential impact on the business. Monte Carlo Simulation: A computational method that uses random sampling to model the probability of different outcomes in a process.