Which of the following is an advantage of discounted methods over non-discounted methods? In which situation would the Delphi Method be most effective for demand forecasting?
Understand the Problem
The question is asking about advantages of discounted methods in finance compared to non-discounted methods, and it also inquires about the appropriate application of the Delphi Method for demand forecasting.
Answer
Discounted methods account for time value of money. Delphi Method is effective when expert anonymity is needed.
["The advantage of discounted methods over non-discounted methods is that they account for the time value of money.","The Delphi Method would be most effective for demand forecasting when expert opinions need to remain anonymous to avoid bias or influence."]
Answer for screen readers
["The advantage of discounted methods over non-discounted methods is that they account for the time value of money.","The Delphi Method would be most effective for demand forecasting when expert opinions need to remain anonymous to avoid bias or influence."]
More Information
Discounted methods consider how the value of money decreases over time, making them more accurate for long-term financial analysis. The Delphi Method is useful in situations where unbiased expert consensus is critical.
Tips
A common mistake is overlooking the time value of money, which is crucial in discounted methods.
Sources
- What Is the Delphi Method, and How Is It Useful in Forecasting? - investopedia.com
- The Advantages and Disadvantages of the Delphi Method - Triducive - triducive.com
AI-generated content may contain errors. Please verify critical information
