List and describe the differences between forecasts and predictions?
Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.
Expert Solution
Step 1
The future is the very first thing that comes to our minds whenever we hear the words "forecasting" and perhaps "prediction." Forecasting is the term used in business to describe the projection of future product demand. It does not resemble a prediction. Prediction is only the manager's educated estimate. Forecasts are based on a careful examination of historical data. Prediction, however, is subject to subjective judgments. When the manager gets a precise prognosis, his work is made much simpler. It is common knowledge that there are risks involved and that the future is uncertain. People are still determining what will occur at any given time. It is preferable to take preventive action to lower the danger. Additionally, preparation is necessary to lessen ambiguity.
