What forecasting technique compares current situations to similar past events?

The forecasting technique that compares current situations to similar past events is the Historical Analogy method. This approach relies on the assumption that past events can provide valuable insights into future outcomes when faced with comparable conditions. By analyzing historical data and drawing parallels to the present situation, organizations can generate more informed predictions regarding trends, behaviors, and potential challenges.

Historically, this method has been effective in various contexts, including economic forecasting, strategic planning, and risk management, as it leverages real-world experiences to anticipate future scenarios. By identifying patterns or outcomes from similar past events, decision-makers can make predictions with greater confidence, enhancing their overall planning and strategic efforts.

While other forecasting techniques like the Delphi Method or Trends Analysis have their unique advantages, they do not specifically focus on making direct comparisons with past events in the same manner that Historical Analogy does. Random Behavior does not involve structured comparisons and lacks the systematic approach of drawing insights from historical contexts.