forecasting definition

forecasting

Planning tool which helps management in its attempts to cope with the uncertainty of the future. It starts with certain assumptions based on the management's experience, knowledge, and judgment. These estimates are projected into the coming months or years using one or more techniques such as Box-Jenkins models, Delphi method, exponential smoothing, moving averages, regression analysis, and trend projection. Since any error in the assumptions will result in a similar or magnified error in forecasting, the technique of sensitivity analysis is used which assigns a range of values to the uncertain factors (variables). A forecast (which indicates what 'might' happen) should not be confused with a budget (which shows what 'ought' to happen). See also backcasting.

forecasting is in the Accounting & Auditing, Banking, Commerce & Finance, Decision Making, Problem Solving, & Strategy, Planning & Scheduling and Statistics, Mathematics, & Analysis subjects.

forecasting appears in the definitions of the following terms: decision analysis, econometric modeling, autoregressive moving average (ARMA) model, manufacturing resource planning (MRP-II), delphi method, operations research (OR), cost management, autoregressive (AR) process, regression analysis (RA), trend impact analysis and

forecasting appears in the other terms: qualitative forecasting technique, forecasting horizon, delphi forecasting, collaborative planning, forecasting, and replenishment (CPFR), naive forecasting, forecasting system, trend line forecasting, causal forecasting, bottom-up forecasting, causal forecasting model and

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