It is the process of predicting or estimating the future based on past and present data.

• It uses personal observations. • It shows the probability of happening of future events. . • It analysis past and present data. • It uses statistical tools and techiques.• Forecasting is concerned with future events.

such as. • How much profit will the business make? • How much demand will there be for a product or service? • How much will it cost to produce the product or offer the service? • How much money will the company need to borrow? • When and how will borrowed funds be repaid? .Forecasting used to answer important questions.

Developing sound foundation 3. Follow up action .Steps in Forecasting 1. Collecting and analysing data 4. Comparing results 6. Estimating future events 5. Analysing and understanding the problem 2.

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