How should it assess this outcome?

A company has completed the forecasting portion of its digital transformation. It is now forecasting a probabilistic range of possible outcomes for each item versus a one-number forecast for each item.

How should it assess this outcome?
A . This is a negative and expected result.
B . This is a negative and unexpected result.
C . This is a positive and expected result.
D . This is a positive and unexpected result.

View Answer

Answer: C

Explanation:

According to the CTSC Exam Content Manual1, probabilistic forecasting is one of the key capabilities of the sense digital discipline, which aims to capture and analyze data from various sources to generate insights and foresights for decision making. Probabilistic forecasting provides a range of possible outcomes for each item, along with the associated probabilities, rather than a single point estimate. This allows the company to better understand the uncertainty and variability of the demand and supply, and to plan accordingly. Probabilistic forecasting is a positive and expected result of the digital transformation, as it enhances the accuracy and reliability of the forecasts, and enables more effective risk management and scenario analysis.

1: https://www.ascm.org/ctsc-ecm/