What are some possible challenges and limitations of financial forecasting?© BrainMass Inc. brainmass.com June 3, 2020, 11:52 pm ad1c9bdddf
There are several possible challenges and limitations of financial forecasting. One of the biggest challenge is the accuracy of its prediction. A forecast is simply an estimate. We can use as sophisticated technique as possible, but it will still not give us an accurate prediction. Complex regression analysis and neural network methods are often used to determine a forecast, but none of them are precisely accurate. This is one of the biggest challenges. ...
The solution goes into a great amount of detail regarding the challenges and limitations of financial forecasting. Step-by-step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.