Mathematical forecasting is also known as quantitative forecasting. Which one of the following statements best describes mathematical forecasting techniques?

Risk analysis of possible outcomes describes a scenario-based planning approach, which is a qualitative technique relying on judgment rather than a mathematical technique grounded in historical data.

While statistical analysis is a tool used within quantitative forecasting, this choice misidentifies statistical analysis itself as the predictor rather than correctly identifying past performance data as the predictor that statistical tools are applied to.

Structured reviews of current performance describe a present-focused qualitative assessment method and not a mathematical technique that uses historical data to extrapolate future trends.

Quantitative forecasting is built on the core premise that past performance is the best predictor of future performance - meaning historical data is the actual input variable driving the forecast. Mathematical and statistical techniques are the tools used to analyze that data, but the defining characteristic of the approach is its reliance on historical performance records rather than judgment, current reviews, or scenario planning.