Forecasting Methods Compare and Contrast

Forecast in a simple terms is a prophecy thru a statement or claim that a feature event will occur in the future. It looks like to me that some the majority of the people, including children, once in their life time were a forecasters, as sometimes in their past theyve tried to auspicate each future event. This act of making much(prenominal) prospicience is therefore, called forecasting. Forecasts are never finished, they are needed continuously and as the time passes, their accuracy and their impact on actual work are meas So it looks like that forecast in itself, is non too complicated, it becomes complicated once the word good is given over to it. Thus, the forecast has to be well thought and planned so it can be called good or adequate forecasting. In order to prepare a forecast, iodin should first call the assumptions in the forecast model one intent to use. so gather and analyze relevant data. After that, forecast and finally, monitoring device the results to whether or not the trend has weakened, strengthened, or if there is any factors that have gone unchanged. Forecast should be timely, perfect, reliable, and the technique should be simple to understand and yet, cost-effective (McGraw-Hill, 2005).

Obtaining a reliable and accurate forecasting of future sales or market expression is of paramount importance for business people such as policy makers, companies making investment decisions, setting up prices and so on. There are several forecasting methods and they are differently used by different companies to satisfy each one specific needs. Forecasting models companies use depend mainly of factors such as accuracy required, time horizon, availability of data and skilled personnel (1995, Colgate, et al).

        Forecast can be long-term or short-term. The techniques used in forecasting may be sort out into two categories: qualitative or quantitative. Qualitative is...

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