Normally, forecasting is the process of estimating future related present and past data. It offers information based on effective future events and their cost for industry or organisations. The forecasting Analysis cannot diminish uncertainty and complications of the future. Nevertheless, it will boost up the confidence of management to make some essential decisions. Usually, forecasting is the fundamentals of planning, it uses lots of statistical approaches, so it is otherwise called as Statistical Analysis. Forecasting helps to keep managers or organisation alert and active to face any complicated challenges of future activities and modifies in an environment.
Moreover, the forecasting starts with the definite assumptions related to management experience, judgment, and knowledge. These types of estimates are appealed into upcoming years or months or days using different approaches include moving averages, exponential smoothing, trend projection, regression analysis, Delphi method, Box-Jenkins models and much more. Some characteristics and peculiarities of forecasting analysis are listed below that includes
- Forecasting Analysis in troubled with the future actions
- Most important meaning of forecasting is to analysis present and past information
- Forecasting shows possibility of happening of the future actions
- It especially uses personal observations, statistically techniques, and tools