Forecasting involves making predictions about future events or occurrences. The forecasting process involves 6 steps: 1) analyzing the problem, 2) developing a sound foundation using available data and experience, 3) collecting and analyzing relevant data, 4) estimating future events using trend analysis, 5) comparing actual results to estimates, and 6) taking follow up action based on lessons learned. There are two main types of forecasting methods - qualitative methods based on judgment and quantitative methods based on mathematical models.