1. Why is it important to understand that when collecting data through these means it is a recommend best practice to implement several of these qualitative forecasting techniques to better provide the business with accurate data and decrease risks.
2. A baker must decide the right number of breads to bake at the beginning of the day. He can sell the bread for $1.50 while his ingredients and labor costs are $0.75 in total. If he is unable to sell a bread loaf at the end of the day, he can give it to a discount store for $0.25. The deli manager has run statistics on historical demand and determined the weekly demand was normally distributed with mean of 2,000 and standard deviation of 150 units. The store is open 24 hrs a day, 7 days a week for business and no apparent seasonal/cyclic pattern can be found.