What are the two types of forecasts typically used in business planning?

The two types of forecasts typically used in business planning are qualitative and quantitative forecasts. Qualitative forecasts rely on subjective judgment, intuition, and experience to predict future outcomes, often using methods such as expert opinions and market research. This approach is particularly valuable in situations with limited historical data or when anticipating new product introductions.

On the other hand, quantitative forecasts utilize numerical data and statistical techniques to predict future trends. This type of forecasting is grounded in historical data and empirical evidence, employing methods like time series analysis and regression models. Quantitative forecasts are particularly effective in environments with established patterns and data availability.

Together, these two forecasting approaches provide a comprehensive framework for businesses to plan effectively, balancing the insights gathered from human experience and analytical data analysis.