Main motive behind the experience approach to forecasting
Explain the main motive behind the experience approach to forecasting?
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The experience approach to forecasting is mainly made on the assumption that the things might happen in a certain way in the future as the same happened that way in the past.
a) For illustration, if it always takes you fifteen minutes to reach the grocery store, then you will most likely presume that it will take you fifteen minutes the next time you go to the store.
b) In the same way, financial managers frequently presumes earnings, expenses and sales will rise at some particular rates in the future since they did the same in the past.
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