What are the two types of forecasting techniques?

The most appropriate classification of forecasting techniques is through qualitative and quantitative methods. Qualitative forecasting relies on subjective judgment, intuition, or experience, often used when there is little or no historical data. It includes techniques like expert opinion, focus groups, and market research, where insights from knowledgeable individuals are prioritized.

On the other hand, quantitative forecasting utilizes historical data and statistical analysis to predict future outcomes. It includes methods like time-series analysis and regression, focusing on patterns and relationships in data.

Understanding both qualitative and quantitative techniques offers a comprehensive approach to forecasting by enabling the use of data alongside human insights, catering to various scenarios in asset management and decision-making processes. This dual approach enhances accuracy and facilitates informed strategic decisions within the context of whole life asset management.