From the course: Excel: Market Research Strategies

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Demand forecasting caveats

Demand forecasting caveats - Microsoft Excel Tutorial

From the course: Excel: Market Research Strategies

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Demand forecasting caveats

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- [Narrator] All forecasts or estimates of demand and market potential are wrong. A forecast will never be 100% precisely accurate in any kind of meaningful, real-world application. Knowing that though, we do need to be able to understand when our forecast is likely to be more accurate or less accurate. I'm in the zero one 10 begin file. Now, we're looking at the zero one underscore 10 caveat sheet. What we see here is an actual real-world set of unit sales, along with revenues, over a 12-month period for a particular hypothetical product. Now, we forecasted, based on this same data, that for a particular month, say June, we might have sales of 29 units. Well, if we look at the real-world figure of 69 versus the unit sales forecast of 29, I might say, well, what's going on here? These seem pretty far apart, and you're absolutely right. There's a few reasons for that, and you want to be aware of this.…

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