Short definition: Forecasting is the process of predicting future events or trends based on past and present data, as well as expert judgment.
Explanation: Forecasting is used in various fields, including finance, economics, business, and weather forecasting. It involves analyzing historical data, identifying patterns and trends, and using statistical or mathematical models to predict future outcomes. Forecasting can be used to make informed decisions about resource allocation, production planning, inventory management, and other business activities.
Example: A company might use forecasting to predict its future sales based on historical sales data, market trends, and economic forecasts. This information can be used to adjust production levels, inventory levels, and marketing strategies.
Additional information (optional): Forecasting is not an exact science, and there is always a degree of uncertainty associated with any forecast. However, by using sound forecasting techniques and incorporating relevant data, businesses and individuals can make more informed decisions and better prepare for the future.