A sales organization creates a new sales forecast by simply taking the average of demand forecasts that each sales manager generated individually. What type of subjective forecasting approach best describes this?
As far as the situation is concerned, the new sales forecast is created by each sales manager using a reference method individually to create an average of several other demand forecasts.
The combination of forecast increases the likelihood of accuracy when the two models correlate with each other.
Therefore, reference combinations are often used to improve forecast accuracy. A linear combination of two or more predictors gives more accurate instructions than using a single predictor.
