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ASSIGNMENT
BY :-
MONIKA SAXENA
PRN -16021141064
SECTION B
FORECASTING is the process of making predictions of the future based on past
and present data and most commonly by analysis of trends. A commonplace
example might be estimation of some variable of interest at some specified future
date. Prediction is a similar, but more general term. Both might refer to formal
statistical methods employing time series, cross-sectional or longitudinal data, or
alternatively to less formal judgmental methods.
Types of Forecasts
Economic forecasts predict a variety of economic indicators, like money
supply, inflation rates, interest rates, etc.
Technological forecasts -Predict rates of technological progress and
innovation.
Demand forecasts o Predict the future demand for a companys products or
services.
Causal Models
Often, leading indicators can help to predict changes in future demand e.g.
housing starts
Causal models establish a cause-and-effect relationship between independent
and dependent variables
A common tool of causal modeling is linear regression:
Additional related variables may require multiple regression modeling
Linear Regression