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December 26, 2017

Forecasting essay sample


If one is trying to explain what the term ‘forecasting’ means, one should probably mention that it is a process of making assumptions about the outcomes of those events that have not been observed yet. In other words, this process can also be called prediction which is a more generic term.

Uncertainty and risk are two major aspects in forecasting. There are several methods regarding forecasting. The two most common ones are qualitative method and quantitative method. The qualitative technique is quite often based on the opinion of experts or consumers which is why it is also called subjective. If past data are not available, this technique proves to be really useful. On the contrary, the quantitative method is applied when past data are available. Thus, the forecasting of future data is done on the basis of the past data. What is more, there are time series methods, econometric forecasting methods judgmental methods and artificial intelligence methods to take into account. If you are interested in learning more about forecasting, its techniques as well as the way it all works, feel free to go to …

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