Predictability in Business · The Frontier Lexicon

Reference Class Forecasting

Lexicon / Predictability in Business / Reference Class Forecasting
Daniel Kahneman & Amos TverskyIntuitive prediction work, 1979

Correct the inside view's optimism by taking the outside view: forecast from the distribution of outcomes in a class of similar past cases.

Bent FlyvbjergMegaproject research, 2006 onward

Applied at scale: base project forecasts on actual outcomes of comparable projects — the cure for systematic cost underestimation and benefit inflation.

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Related in Predictability in Business

ForecastingPredictive AnalyticsLeading vs Lagging IndicatorsScenario AnalysisMonte Carlo SimulationPipeline CoverageCohort AnalysisDemand Planning

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