Which forecasting approach uses mathematical models and historical data to make forecasts?

• A. Qualitative forecasting
• B. Quantitative forecasting
• C. Customer survey
• D. Time Series

Answer: (B)

Quantitative forecasting relies on numerical data and mathematical models to predict future demand. It uses historical data to identify patterns, trends, and relationships, then applies formulas or algorithms to generate forecasts. Examples include moving averages, exponential smoothing, regression analysis, and other time-series models. This approach is data-driven and objective, unlike qualitative forecasting, which hinges on judgment and opinion. A customer survey is a data-collection method rather than a forecasting method by itself, and time series is a specific quantitative technique that uses historical values over time. The description in the question fits the broader quantitative forecasting approach because it emphasizes using math and past data to forecast.