What type of forecasting utilizes non-statistical methods like expert judgment?

Qualitative revenue forecasting is characterized by its reliance on non-statistical methods to predict future revenues. It often involves gathering insights from expert judgment, intuition, or subjective evaluations to inform predictions. This approach is particularly useful in situations where historical data may not be reliable or when forecasting for new initiatives where limited or no past data exists.

Experts in the field, such as management teams or financial analysts, leverage their experience and understanding of market conditions, economic indicators, and organizational goals to develop their forecasts. By focusing on qualitative factors, this method enhances the understanding of the environment in which the organization operates, enabling more informed decision-making.

In contrast, methods like multivariate regression, quantitative revenue forecasting, and non-stationary time series forecasting rely heavily on historical data and statistical techniques to generate predictions, making them less applicable when qualitative insights are essential. Using qualitative forecasting allows organizations to incorporate a broader range of perspectives and factors that may influence revenues but are not easily quantifiable.