Judgmental Forecast

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Judgmental Forecast

A forecast made on subjective information. A judgmental forecast is made by a person thought to be knowledgeable about the company or market about which the forecast is being made. It may consider quantitative information, but it relies on a great deal of subjective feeling.

References in periodicals archive ?

To verify that our results are not specific to the relatively short sample we have used or to the Greenbook vintages we employed, we repeated the exercise using Blue Chip forecasts as the judgmental forecast for the 1992-2010 period.

The DSGE model forecast is similar to the judgmental forecast and is better than the BVAR, in terms of RMSEs, at almost all horizons, but all three forecasts are again very poor.

In all six panels in figure 7, the model forecast and the judgmental forecast are close to each other when the forecast horizon is 4 quarters.

An interesting point is that the judgmental forecast improves within quarters, especially the nowcast quarter, whereas the DSGE and BVAR model forecasts do not.

How useful are estimated DSGE model forecasts for central bankers?

In other words, greater expertise does not lead to better judgmental forecasts.

Research suggests that judgmental forecasts can also be improved by simply averaging the results of multiple independent forecasts.

Cognitive biases do much to explain the limitations of judgmental forecasts, but Tetlock's work suggests an additional explanation.

Making the best use of judgmental forecasting

Improving Forecasting Accuracy by Combining Statistical and Judgmental Forecasts in Tourism.

Building forecasting models for restaurant owners and managers: a case study

In general, they found the judgmental forecasts to be less than optimal.

Judgmental forecasts of time series affected by special events: does providing a statistical forecast improve accuracy.

An overview of forecasting error among international manufacturers

Judgmental forecasts should be another tool as well.

Future research related to the PMI should explore the use of combining judgmental forecasts with the quantitative forecasting of the PMI.