Forecasting accuracy refers to the relationship between actual and forecasted demand, and accuracy can be affected by various considerations. What is one of the challenges with the analog technique?

 The challenge with the analog technique is in selection of an appropriate analog as an inappropriate selection reduces forecast accuracy. We can take for example the following scenario. When a movie studio releases a sequel to a previously successful motion picture, a forecasting analog based on the initial release will likely generate a different estimate than a forecasting analog based on the performance patterns of sequels to other movies and one analog will be more accurate than the other.


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