Uncertainty is the major challenge faced in a manger’s decision-making process.
business
Description
Question
Uncertainty is the major challenge faced in a manger’s decision-making process. One of the methods to minimize the uncertainty is forecasting. Forecasting is most often part of a larger process of planning and managing. A forecast is necessary to provide accurate estimates of the future for this larger process. Although most managers are not aware that they are making probability statements when they forecast, they are nonetheless implicitly doing so, For example, when someone forecasts next month’s demand as 900 units, he or she is implicitly stating that there is about a 50 percent chance that demand will be greater than 900 and a 50 percent chance demand will be less than 900. Thus, all managers forecast.
In general, forecasting methods comprises of univariate, multivariate and qualitative approach. Forecasting could be defined as a probabilistic estimate or description of a future value or condition. Forecast includes a mean, range, and probability estimate of that range. On the other hand, financial decision making identifies and analyses the financial decision made by financial manager, using the knowledge, skills and competency in accounting and finance. You are required to provide an empirical review of literature on the application of forecasting methods in any ONE or MIXED of any the followings topics of finance decision making:
This is a research-based question of around 5,000 words. You are expected to clearly state
any assumptions you make, and support statements and theories by referencing to
appropriate sources. You need to have at least 15 citations from related journals and use
Harvard referencing style. Your writing must have less than 15% similarity index.
