Statistics and Forecasting

Forecasting implies assessing the future from the present. Since ancient times man has been in search of forecasting methods for reducing uncertainties and planning, in modern times due to progress in statistical methods we can now forecast with much better precision and horizon. Forecasting is used in several fields, such as in management. Managers may seek sales forecast or forecast of availability of future supply of inputs. Major trends in the macro environment like political, technological, economic and natural environment can be predicted using forecasting techniques. Statistical forecasting techniques include estimation methods, time series analysis, cross sectional and longitudinal analysis, causal and econometric methods and probabilistic methods.

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