This is a trick question. Some things are INHERENTLY DIFFICULT to forecast and, when forecasting numerical quantities, forecasters can SELDOM be exactly right. To be useful, a method must provide forecasts that are more accurate than chance. This condition can often be met, but ONE should not assume that it will be. A good forecasting procedure is one that is better than other reasonable alternatives. Benchmark forecast errors are available for corporate earnings, new products, sales, and employment.

This is a trick question. Some things are inherently difficult to forecast and, when forecasting numerical quantities, forecasters can seldom be exactly right. To be useful, a method must provide forecasts that are more accurate than chance. This condition can often be met, but one should not assume that it will be. A good forecasting procedure is one that is better than other reasonable alternatives. Benchmark forecast errors are available for corporate earnings, new products, sales, and employment.