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InfoSci-OnDemand Download Premium Research Papers Full text search our database of 169,400 titles for Forecasting to find related research papers. Learn More About Forecasting in These Related TitlesCopyright 2021. 394 pages. Organizations are facing major disruptions in tech... In Stock Copyright 2020. 333 pages. Exploring online learning through the lens of sync... In Stock Copyright 2020. 539 pages. The world is witnessing a media revolution similar... In Stock Copyright 2019. 324 pages. Community colleges serve more students than any ot... In Stock Copyright 2017. 454 pages. The majority of adult learners are looking to atta... In Stock Copyright 2016. 622 pages. While freedom of speech is a defining characterist... In Stock Copyright 2014. 465 pages. Online communities continue to evolve as more peop... In Stock Copyright 2014. 405 pages. Leaders represent a necessary part of any organiza... In Stock Copyright 2013. 457 pages. The predicted “ICT revolution” has gained increasi... In Stock Copyright 2003. 384 pages. Enterprise evolution (or electronic enterprise) is... In Stock Predicting what will happen in the future by taking into consideration the events from the past and present What is Forecasting?Forecasting refers to the practice of predicting what will happen in the future by taking into consideration events in the past and present. Basically, it is a decision-making tool that helps businesses cope with the impact of the future’s uncertainty by examining historical data and trends. It is a planning tool that enables businesses to chart their next moves and create budgets that will hopefully cover whatever uncertainties may occur. Budgeting vs. ForecastingOne thing that is definitely true is that budgeting and forecasting are both tools that help businesses plan for their future. However, the two are distinctly different in many ways. Let’s consider the following points:
Forecasting MethodsBusinesses choose between two basic methods when they want to predict what can possibly happen in the future, namely, qualitative and quantitative methods. 1. Qualitative methodOtherwise known as the judgmental method, qualitative forecasting offers subjective results, as it is comprised of personal judgments by experts or forecasters. Forecasts are often biased because they are based on the expert’s knowledge, intuition, and experience, and rarely on data, making the process non-mathematical. One example is when a person forecasts the outcome of a finals game in the NBA, which, of course, is based more on personal motivation and interest. The weakness of such a method is that it can be inaccurate. 2. Quantitative methodThe quantitative method of forecasting is a mathematical process, making it consistent and objective. It steers away from basing the results on opinion and intuition, instead utilizing large amounts of data and figures that are interpreted. Features of ForecastingHere are some of the features of making a forecast: 1. Involves future eventsForecasts are created to predict the future, making them important for planning. 2. Based on past and present eventsForecasts are based on opinions, intuition, guesses, as well as on facts, figures, and other relevant data. All of the factors that go into creating a forecast reflect to some extent what happened with the business in the past and what is considered likely to occur in the future. 3. Uses forecasting techniquesMost businesses use the quantitative method, particularly in planning and budgeting. The Process of ForecastingForecasters need to follow a careful process in order to yield accurate results. Here are some steps in the process: 1. Develop the basis of forecastingThe first step in the process is developing the basis of the investigation of the company’s condition and identifying where the business is currently positioned in the market. 2. Estimate the future operations of the businessBased on the investigation conducted during the first step, the second part of forecasting involves estimating the future conditions of the industry where the business operates and projecting and analyzing how the company will fare. 3. Regulate the forecastThis involves looking at different forecasts in the past and comparing them with the actual things that happened with the business. The differences in previous results and current forecasts are analyzed, and the reasons for the deviations are considered. 4. Review the processEvery step is checked, and refinements and modifications are made. Sources of Data for Forecasting1. Primary sourcesInformation from primary sources takes time to gather because it is first-hand information, also considered the most reliable and trustworthy sort of information. The forecaster himself does the collection, and may do so through things such as interviews, questionnaires, and focus groups. 2. Secondary sourcesSecondary sources supply information that has been collected and published by other entities. An example of this type of information might be industry reports. As this information has already been compiled and analyzed, it makes the process quicker. Additional ResourcesThank you for reading CFI’s guide to Forecasting. To keep learning and advancing your career, the following CFI resources will be helpful:
What is the process of predicting the future based on past data?Predictive analytics is the process of using data analytics to make predictions based on data. This process uses data along with analysis, statistics, and machine learning techniques to create a predictive model for forecasting future events.
What is the process of predicting future?Forecasting refers to the practice of predicting what will happen in the future by taking into consideration events in the past and present.
What do you call to a method to predict a future?What Is Forecasting? Forecasting is a technique that uses historical data as inputs to make informed estimates that are predictive in determining the direction of future trends.
What is the process of estimating future data?Forecasting is a technique of predicting the future based on the results of previous data. It involves a detailed analysis of past and present trends or events to predict future events. It uses statistical tools and techniques. Therefore, it is also called Statistical analysis.
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