Forecasting is the process of making predictions or estimates about future events based on past and present data. It is used in various fields such as business, economics, weather, and finance to anticipate future trends and outcomes.
There are different methods of forecasting, including qualitative methods that rely on expert judgment and quantitative methods that use mathematical models and statistical techniques to analyze historical data and make projections.
Some common quantitative forecasting techniques include time series analysis, regression analysis, and moving averages. These methods help in identifying patterns and trends in the data to make informed predictions about future values.
Forecasting is valuable for decision-making, as it allows businesses and organizations to plan and allocate resources effectively, manage risks, and adapt to changing market conditions.
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