What method does judgmental forecasting primarily use?

Judgmental forecasting primarily relies on expert opinions, especially in scenarios where data is scarce or unreliable. This approach values the insights and experiences of individuals who possess specialized knowledge about the market or the subject in question. When quantitative data is insufficient, such as in new market scenarios or when launching a novel product, the insights from experts become crucial. Their judgments can incorporate qualitative factors that may not be captured through numerical analysis, allowing for a more nuanced understanding of potential outcomes.

Other methods, such as statistical trend analysis or historical performance metrics, typically emphasize the use of existing data and quantitative methods, which would not be suitable if the data is limited. Furthermore, mathematical algorithms also fall into the category of data-driven approaches, making them less applicable in circumstances where judgments must be made based on expertise rather than hard data.