Hi, My question relates to Question 3.12 The solution states: One disadvantage is: All of the above work will be based on a very limited number of model points. There will therefore be significant potential for model point error. However, results will be scaled up according to NB levels. So why does the above error arise? Thanks!
Hi, My question relates to Question 3.12 The solution states: One disadvantage is: All of the above work will be based on a very limited number of model points. There will therefore be significant potential for model point error. However, results will be scaled up according to NB levels. So why does the above error arise? Thanks! I have not seen the question, but from the text that you have posted I do not know if there is any relation between scaling up for NB and its impact on resultant model point error (MP error). In fact if there is, then I feel that the inadequate representation due to insufficient number of model points (MP error) could translate in to a NB level error since there is less granularity in capturing the underlying business and hence more error in forecasting the NB levels. So, MP error could probably magnify the NB level forecasting error. I see no reason for the MP error to be minimised as you seem to imply. That's my understanding though
