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Which of the following are the two types of quantitative forecasting methods?
Simple and complex forecasting
Survey and focus group methods
Time series and associative methods
Qualitative and quantitative methods
The correct answer is: Time series and associative methods
The correct choice identifies time series and associative methods as the two types of quantitative forecasting methods. Time series methods focus on analyzing historical data to identify trends, patterns, and seasonal variations over time. By using past data points, these methods can help predict future values based on the assumption that the historical patterns will continue. Examples include moving averages and exponential smoothing. Associative methods, on the other hand, involve identifying relationships between the variable being forecasted and one or more independent variables. These methods utilize statistical techniques to establish a correlation between variables, allowing forecasters to predict the outcome based on changes in those associated factors. Regression analysis is a commonly used technique in this category. Understanding these two methodologies is crucial because they leverage numerical data to make informed predictions, which can greatly enhance decision-making processes in supply chain management.