(Answered) How can businesses use elasticity estimates for forecasting?How can businesses use elasticity…

➤ Why should forecasters account for uncertainty and confidence intervals in elasticity estimates?
Because elasticity estimates carry sampling error and model uncertainty, planners must quantify forecast risk. Use standard errors, confidence intervals, or Monte Carlo to produce demand ranges instead of single numbers. This practice reveals upside and downside scenarios, informs safety stock and pricing risk, and prevents overconfident forecasts that can harm supply chain and revenue planning.