Qualitative forecasting is based on

• A. Historical data patterns
• B. Detailed simulations
• C. Opinion and intuition
• D. Inventory levels

Answer: (C)

Qualitative forecasting relies on subjective judgments, opinions, and intuition from people with experience and market insight. It’s used when there isn’t enough reliable historical data or when conditions are changing in ways past patterns can’t predict, such as new products or disruptive markets. Techniques like consulting experts, Delphi panels, market research, and scenario planning illustrate this human-centric approach. Because it centers on what people think and feel about future trends, it isn’t driven by numerical history or simulations, and inventory levels are simply data points that can inform decisions rather than the basis of the forecast. So the element that matters most here is opinion and intuition.