The grey model GM(1,1) is a popular forecasting method when using limited time series data and is successfully applied to management and engineering applications. On the other hand, the reliability and validity of the grey model GM(1,1) have never been discussed. First, without considering other causes when using limited time series data, the forecasting of the grey model GM(1,1) is unreliable, and provide insufficient information to a decision maker. Therefore, for the sake of reliability, the fuzzy set theory was hybridized into the grey model GM(1,1). This resulted in the fuzzy grey regression model, which granulates a concept into a set with membership function, thereby obtaining a possible interval extrapolation. Second, for a newly developed product or a newly developed system, the data collected are limited and rather vague with the result that the grey model GM(1,1) is useless for solving its problem with vague or fuzzy-input values. In this paper the fuzzy grey regression model is verified to show its validity in solving crisp-input data and fuzzy-input data with limited time series data. Finally, two examples for the LCD TV demand are illustrated using the proposed models.