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Forecasting: By: Rajesh Kain Submit To: MR Puri

Forecasting is the process of making predictions about future events based on historical data and patterns. The techniques for forecasting were developed in the 19th century, such as regression analysis. Modern techniques include decomposition, smoothing, and Box-Jenkins procedures. Organizations use forecasting to help make decisions for an uncertain future by examining logical patterns in historical data rather than random guesses. True forecasting requires applying judgment to projections rather than just mechanically extending past trends into the future.

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Rajesh Kain
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13 views

Forecasting: By: Rajesh Kain Submit To: MR Puri

Forecasting is the process of making predictions about future events based on historical data and patterns. The techniques for forecasting were developed in the 19th century, such as regression analysis. Modern techniques include decomposition, smoothing, and Box-Jenkins procedures. Organizations use forecasting to help make decisions for an uncertain future by examining logical patterns in historical data rather than random guesses. True forecasting requires applying judgment to projections rather than just mechanically extending past trends into the future.

Uploaded by

Rajesh Kain
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FORECASTING

By:
Rajesh kain
Submit to:
Mr Puri
WHAT DOES IT MEAN…??
 Forecasting is the process of making
statements about events whose actual outcomes
(typically) have not yet been observed. A
commonplace example might be estimation for
some variable of interest at some specified
future date.
The History of forecasting

 Mostly the the forecasting techniques were


developed in the 19th century. For example
regression techniques is used to forecast in
business to predict sales and other variables. As
well some techniques are developed recently
and has been recognized by the business
community at large. They are decomposition,
smoothing, and Box-Jenkins procedures.
Need of Forecasting
 organizations operate in an atmosphere of
uncertainty but decisions have to be made today
that affects the future of the organization.
Educated guesses about the future are more
valuable than uneducated guesses. There are
various ways of making forecasts that rely on
logical methods of manipulating data that have
been generated by historical events.
The importance of forecasting

  Forecasting has been described as an attempt to foresee


the future by examining historical data and patterns and
applying judgment to projections created from those
patterns. Forecasting technicians might say that the art
of forecasting consists of generating unbiased estimates
of the future value of some variable, such as sales, on the
basis of past and present knowledge and experience.
Simply extending past sales data into the future using
trend lines or some other simplistic technique do not
constitute forecasting. Such extensions of past behaviors
are merely mechanical functions; in order to be a true
forecast, judgment must be applied.

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