When a firm estimates the demand for its product what data collection problems would you anticipate having. For example, at GM how hard is it to list the non-price determinate of demand for its cars? Can they obtain the right set of data? How would they collect the data? What would cause errors in their comparative statistical analysis?
Estimation of demand
Forecasting is used for estiamting demand.
Forecasting is an essential tool in any decision making process. There are various techniques of forecasting:
Qualitative techniques involve primarily judgment, and quantitative, involving primarily historical data and mathematical models.
Qualitative techniques rely on judgment, intuition, and subjective evaluation. Among the major techniques within this category are market research (surveys), Delphi (panel consensus), historical analogy, and management estimation (guess).
Thus the accuracy of data is important to estimate the demand. Right set of data can be found.
Data can be collected either through primary sources or secondary sources.
Primary sources are usually original "records" which were created at the time an "historical event" - any phenomenon or procedure which has taken place (or is still taking place) in a particular time and place - occurred. They may be described ...
Explain errors in their comparative statistical analysis.