SlideShare a Scribd company logo
1 of 2
Download to read offline
What is forecasting? Explain the different techniques of forecasting?
Solution
Forecasting is the process of estimating the relevant events of future, based on the analysis of
their past and present behaviour.
Techniques of Forecasting:
There are various methods of forecasting. Some of them are:
1. Historical Analogy Method: Under this method, forecast in regard to a particular situation is
based on some analogous conditions elsewhere in the past. The economic situation of a country
can be predicted by making comparison with the advanced countries at a particular stage through
which the country is presently passing.
2. Survey Method:
Surveys can be conducted to gather information on the intentions of the concerned people.
3. Opinion Poll:
Opinion poll is conducted to assess the opinion of the experienced persons and experts in the
particular field whose views carry a lot of weight.
4. Business Barometers:
A barometer is used to measure the atmospheric pressure. In the same way, index numbers are
used to measure the state of an economy between two or more periods. These index numbers are
the device to study the trends, seasonal fluctuations, cyclical movements, and irregular
fluctuations.
5. Time Series Analysis:
Time series analysis involves decomposition of historical series into its various components, viz.
trend, seasonal variances, cyclical variations, and random variances. When the various
components of a time series are separated, the variation of a particular situation, the subject
under study, can be known over the period of time and projection can be made about the future.
6. Regression Analysis:
Regression analysis is meant to disclose the relative movements of two or more inter-related
series. It is used to estimate the changes in one variable as a result of specified changes in other
variable or variables. In economic and business situations, a number of factors affect a business
activity simultaneously.
7. Input-Output Analysis:
According to this method, a forecast of output is based on given input if relationship between
input and output is known. Similarly, input requirement can be forecast on the basis of final
output with a given input-output relationship. The basis of this technique is that the various
sectors of economy are inter-related and such inter-relationships are well-established.

More Related Content

Similar to What is forecasting Explain the different techniques of forecasting.pdf

Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )
Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )
Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )
Neeraj Bhandari
 
Demand forecasting
Demand  forecasting Demand  forecasting
Demand forecasting
Rohit Parkar
 
Demand Forecasting
Demand ForecastingDemand Forecasting
Demand Forecasting
yashpal01
 
ForecastingDiscuss the different types of forecasts to include tim.pdf
ForecastingDiscuss the different types of forecasts to include tim.pdfForecastingDiscuss the different types of forecasts to include tim.pdf
ForecastingDiscuss the different types of forecasts to include tim.pdf
amolmahale23
 

Similar to What is forecasting Explain the different techniques of forecasting.pdf (20)

Demandforecasting 1207335276942149-9
Demandforecasting 1207335276942149-9Demandforecasting 1207335276942149-9
Demandforecasting 1207335276942149-9
 
3...demand forecasting 1207335276942149-9
3...demand forecasting 1207335276942149-93...demand forecasting 1207335276942149-9
3...demand forecasting 1207335276942149-9
 
forecasting
forecastingforecasting
forecasting
 
environmental-forecasting.pptx
environmental-forecasting.pptxenvironmental-forecasting.pptx
environmental-forecasting.pptx
 
environmental-forecasting.pptx
environmental-forecasting.pptxenvironmental-forecasting.pptx
environmental-forecasting.pptx
 
Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )
Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )
Forecasting methods by Neeraj Bhandari ( Surkhet.Nepal )
 
Forecasting Stocks with Multivariate Time Series Models.
Forecasting Stocks with Multivariate Time Series Models.Forecasting Stocks with Multivariate Time Series Models.
Forecasting Stocks with Multivariate Time Series Models.
 
Demand Forecasting in the restaurant management
Demand Forecasting in the restaurant managementDemand Forecasting in the restaurant management
Demand Forecasting in the restaurant management
 
Demand forecasting
Demand  forecasting Demand  forecasting
Demand forecasting
 
Forecasting in OPM.pptx
Forecasting in OPM.pptxForecasting in OPM.pptx
Forecasting in OPM.pptx
 
Time series analysis
Time series analysisTime series analysis
Time series analysis
 
Introduction to demand forecasting
Introduction to demand forecastingIntroduction to demand forecasting
Introduction to demand forecasting
 
Analysis
AnalysisAnalysis
Analysis
 
Analysis 180516011923
Analysis 180516011923Analysis 180516011923
Analysis 180516011923
 
Topic1
Topic1Topic1
Topic1
 
Demand forecasting
Demand forecastingDemand forecasting
Demand forecasting
 
Introduction toDemand Forecasting part one
Introduction toDemand Forecasting part oneIntroduction toDemand Forecasting part one
Introduction toDemand Forecasting part one
 
Demand Forecasting
Demand ForecastingDemand Forecasting
Demand Forecasting
 
15361
1536115361
15361
 
ForecastingDiscuss the different types of forecasts to include tim.pdf
ForecastingDiscuss the different types of forecasts to include tim.pdfForecastingDiscuss the different types of forecasts to include tim.pdf
ForecastingDiscuss the different types of forecasts to include tim.pdf
 

More from solimankellymattwe60

Ventura Capital is a financier who specializes in capitalizing start.pdf
Ventura Capital is a financier who specializes in capitalizing start.pdfVentura Capital is a financier who specializes in capitalizing start.pdf
Ventura Capital is a financier who specializes in capitalizing start.pdf
solimankellymattwe60
 
The mitochondrial electron transport system (METS) and the photos.pdf
The mitochondrial electron transport system (METS) and the photos.pdfThe mitochondrial electron transport system (METS) and the photos.pdf
The mitochondrial electron transport system (METS) and the photos.pdf
solimankellymattwe60
 
The application architeture is design by the application developer a.pdf
The application architeture is design by the application developer a.pdfThe application architeture is design by the application developer a.pdf
The application architeture is design by the application developer a.pdf
solimankellymattwe60
 
Some historians have referred to many of the self-proclaimed “Darwin.pdf
Some historians have referred to many of the self-proclaimed “Darwin.pdfSome historians have referred to many of the self-proclaimed “Darwin.pdf
Some historians have referred to many of the self-proclaimed “Darwin.pdf
solimankellymattwe60
 
Please research Meaningful Use. Prepare a brief report on its origin.pdf
Please research Meaningful Use. Prepare a brief report on its origin.pdfPlease research Meaningful Use. Prepare a brief report on its origin.pdf
Please research Meaningful Use. Prepare a brief report on its origin.pdf
solimankellymattwe60
 
Mention the major difference in the physical phenomena occurring rel.pdf
Mention the major difference in the physical phenomena occurring rel.pdfMention the major difference in the physical phenomena occurring rel.pdf
Mention the major difference in the physical phenomena occurring rel.pdf
solimankellymattwe60
 
My code is not matching up with the results.The output for the cod.pdf
My code is not matching up with the results.The output for the cod.pdfMy code is not matching up with the results.The output for the cod.pdf
My code is not matching up with the results.The output for the cod.pdf
solimankellymattwe60
 
IP Security One problem with Internet protocol (IP) is that it has.pdf
IP Security One problem with Internet protocol (IP) is that it has.pdfIP Security One problem with Internet protocol (IP) is that it has.pdf
IP Security One problem with Internet protocol (IP) is that it has.pdf
solimankellymattwe60
 
Genmo CorporationOn the night of February 27, 2012, certain recor.pdf
Genmo CorporationOn the night of February 27, 2012, certain recor.pdfGenmo CorporationOn the night of February 27, 2012, certain recor.pdf
Genmo CorporationOn the night of February 27, 2012, certain recor.pdf
solimankellymattwe60
 
In the formula for determining a populations genotype frequencies, .pdf
In the formula for determining a populations genotype frequencies, .pdfIn the formula for determining a populations genotype frequencies, .pdf
In the formula for determining a populations genotype frequencies, .pdf
solimankellymattwe60
 
How is a cell membrane selectively permeable - what permeates and.pdf
How is a cell membrane selectively permeable - what permeates and.pdfHow is a cell membrane selectively permeable - what permeates and.pdf
How is a cell membrane selectively permeable - what permeates and.pdf
solimankellymattwe60
 

More from solimankellymattwe60 (20)

What are the products of the secondary metabolism in plants Terpeno.pdf
What are the products of the secondary metabolism in plants  Terpeno.pdfWhat are the products of the secondary metabolism in plants  Terpeno.pdf
What are the products of the secondary metabolism in plants Terpeno.pdf
 
Which of the following is incorrect about emergent propertiesA. T.pdf
Which of the following is incorrect about emergent propertiesA. T.pdfWhich of the following is incorrect about emergent propertiesA. T.pdf
Which of the following is incorrect about emergent propertiesA. T.pdf
 
Which sensor i can use it for my robot when i dont want it to fil.pdf
Which sensor i can use it for my robot when i dont want it to fil.pdfWhich sensor i can use it for my robot when i dont want it to fil.pdf
Which sensor i can use it for my robot when i dont want it to fil.pdf
 
Why might firms consider issuing stock in foreign countries Why mig.pdf
Why might firms consider issuing stock in foreign countries Why mig.pdfWhy might firms consider issuing stock in foreign countries Why mig.pdf
Why might firms consider issuing stock in foreign countries Why mig.pdf
 
What were the Spanish soldiers who fought in the conquests in the Ne.pdf
What were the Spanish soldiers who fought in the conquests in the Ne.pdfWhat were the Spanish soldiers who fought in the conquests in the Ne.pdf
What were the Spanish soldiers who fought in the conquests in the Ne.pdf
 
Ventura Capital is a financier who specializes in capitalizing start.pdf
Ventura Capital is a financier who specializes in capitalizing start.pdfVentura Capital is a financier who specializes in capitalizing start.pdf
Ventura Capital is a financier who specializes in capitalizing start.pdf
 
True or False1. A basidium is a cell of the Basidiomycota in whic.pdf
True or False1. A basidium is a cell of the Basidiomycota in whic.pdfTrue or False1. A basidium is a cell of the Basidiomycota in whic.pdf
True or False1. A basidium is a cell of the Basidiomycota in whic.pdf
 
The mitochondrial electron transport system (METS) and the photos.pdf
The mitochondrial electron transport system (METS) and the photos.pdfThe mitochondrial electron transport system (METS) and the photos.pdf
The mitochondrial electron transport system (METS) and the photos.pdf
 
The disclosure of a contingent liability in the footnotes and on t.pdf
The disclosure of a contingent liability in the footnotes and on t.pdfThe disclosure of a contingent liability in the footnotes and on t.pdf
The disclosure of a contingent liability in the footnotes and on t.pdf
 
The application architeture is design by the application developer a.pdf
The application architeture is design by the application developer a.pdfThe application architeture is design by the application developer a.pdf
The application architeture is design by the application developer a.pdf
 
Suppose a company’s ROE is 16. This company’s payout ratio is 40. .pdf
Suppose a company’s ROE is 16. This company’s payout ratio is 40. .pdfSuppose a company’s ROE is 16. This company’s payout ratio is 40. .pdf
Suppose a company’s ROE is 16. This company’s payout ratio is 40. .pdf
 
Some historians have referred to many of the self-proclaimed “Darwin.pdf
Some historians have referred to many of the self-proclaimed “Darwin.pdfSome historians have referred to many of the self-proclaimed “Darwin.pdf
Some historians have referred to many of the self-proclaimed “Darwin.pdf
 
Please research Meaningful Use. Prepare a brief report on its origin.pdf
Please research Meaningful Use. Prepare a brief report on its origin.pdfPlease research Meaningful Use. Prepare a brief report on its origin.pdf
Please research Meaningful Use. Prepare a brief report on its origin.pdf
 
Mention the major difference in the physical phenomena occurring rel.pdf
Mention the major difference in the physical phenomena occurring rel.pdfMention the major difference in the physical phenomena occurring rel.pdf
Mention the major difference in the physical phenomena occurring rel.pdf
 
My code is not matching up with the results.The output for the cod.pdf
My code is not matching up with the results.The output for the cod.pdfMy code is not matching up with the results.The output for the cod.pdf
My code is not matching up with the results.The output for the cod.pdf
 
Logical FallociesP1 All college students have pet monkeys.P2 J.pdf
Logical FallociesP1 All college students have pet monkeys.P2 J.pdfLogical FallociesP1 All college students have pet monkeys.P2 J.pdf
Logical FallociesP1 All college students have pet monkeys.P2 J.pdf
 
IP Security One problem with Internet protocol (IP) is that it has.pdf
IP Security One problem with Internet protocol (IP) is that it has.pdfIP Security One problem with Internet protocol (IP) is that it has.pdf
IP Security One problem with Internet protocol (IP) is that it has.pdf
 
Genmo CorporationOn the night of February 27, 2012, certain recor.pdf
Genmo CorporationOn the night of February 27, 2012, certain recor.pdfGenmo CorporationOn the night of February 27, 2012, certain recor.pdf
Genmo CorporationOn the night of February 27, 2012, certain recor.pdf
 
In the formula for determining a populations genotype frequencies, .pdf
In the formula for determining a populations genotype frequencies, .pdfIn the formula for determining a populations genotype frequencies, .pdf
In the formula for determining a populations genotype frequencies, .pdf
 
How is a cell membrane selectively permeable - what permeates and.pdf
How is a cell membrane selectively permeable - what permeates and.pdfHow is a cell membrane selectively permeable - what permeates and.pdf
How is a cell membrane selectively permeable - what permeates and.pdf
 

Recently uploaded

會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
中 央社
 
SPLICE Working Group: Reusable Code Examples
SPLICE Working Group:Reusable Code ExamplesSPLICE Working Group:Reusable Code Examples
SPLICE Working Group: Reusable Code Examples
Peter Brusilovsky
 

Recently uploaded (20)

Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community PartnershipsSpring gala 2024 photo slideshow - Celebrating School-Community Partnerships
Spring gala 2024 photo slideshow - Celebrating School-Community Partnerships
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
 
ESSENTIAL of (CS/IT/IS) class 07 (Networks)
ESSENTIAL of (CS/IT/IS) class 07 (Networks)ESSENTIAL of (CS/IT/IS) class 07 (Networks)
ESSENTIAL of (CS/IT/IS) class 07 (Networks)
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
 
diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....diagnosting testing bsc 2nd sem.pptx....
diagnosting testing bsc 2nd sem.pptx....
 
SPLICE Working Group: Reusable Code Examples
SPLICE Working Group:Reusable Code ExamplesSPLICE Working Group:Reusable Code Examples
SPLICE Working Group: Reusable Code Examples
 
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdfFICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
FICTIONAL SALESMAN/SALESMAN SNSW 2024.pdf
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT TOÁN 2024 - TỪ CÁC TRƯỜNG, TRƯỜNG...
 
Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...Andreas Schleicher presents at the launch of What does child empowerment mean...
Andreas Schleicher presents at the launch of What does child empowerment mean...
 
OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...OS-operating systems- ch05 (CPU Scheduling) ...
OS-operating systems- ch05 (CPU Scheduling) ...
 
Including Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdfIncluding Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdf
 
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading RoomSternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
Sternal Fractures & Dislocations - EMGuidewire Radiology Reading Room
 
AIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.pptAIM of Education-Teachers Training-2024.ppt
AIM of Education-Teachers Training-2024.ppt
 
Trauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical PrinciplesTrauma-Informed Leadership - Five Practical Principles
Trauma-Informed Leadership - Five Practical Principles
 
The Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDFThe Story of Village Palampur Class 9 Free Study Material PDF
The Story of Village Palampur Class 9 Free Study Material PDF
 
Observing-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxObserving-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptx
 
Book Review of Run For Your Life Powerpoint
Book Review of Run For Your Life PowerpointBook Review of Run For Your Life Powerpoint
Book Review of Run For Your Life Powerpoint
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptx
 
Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"
 
Supporting Newcomer Multilingual Learners
Supporting Newcomer  Multilingual LearnersSupporting Newcomer  Multilingual Learners
Supporting Newcomer Multilingual Learners
 

What is forecasting Explain the different techniques of forecasting.pdf

  • 1. What is forecasting? Explain the different techniques of forecasting? Solution Forecasting is the process of estimating the relevant events of future, based on the analysis of their past and present behaviour. Techniques of Forecasting: There are various methods of forecasting. Some of them are: 1. Historical Analogy Method: Under this method, forecast in regard to a particular situation is based on some analogous conditions elsewhere in the past. The economic situation of a country can be predicted by making comparison with the advanced countries at a particular stage through which the country is presently passing. 2. Survey Method: Surveys can be conducted to gather information on the intentions of the concerned people. 3. Opinion Poll: Opinion poll is conducted to assess the opinion of the experienced persons and experts in the particular field whose views carry a lot of weight. 4. Business Barometers: A barometer is used to measure the atmospheric pressure. In the same way, index numbers are used to measure the state of an economy between two or more periods. These index numbers are the device to study the trends, seasonal fluctuations, cyclical movements, and irregular fluctuations. 5. Time Series Analysis: Time series analysis involves decomposition of historical series into its various components, viz. trend, seasonal variances, cyclical variations, and random variances. When the various components of a time series are separated, the variation of a particular situation, the subject under study, can be known over the period of time and projection can be made about the future. 6. Regression Analysis: Regression analysis is meant to disclose the relative movements of two or more inter-related series. It is used to estimate the changes in one variable as a result of specified changes in other variable or variables. In economic and business situations, a number of factors affect a business activity simultaneously. 7. Input-Output Analysis: According to this method, a forecast of output is based on given input if relationship between input and output is known. Similarly, input requirement can be forecast on the basis of final
  • 2. output with a given input-output relationship. The basis of this technique is that the various sectors of economy are inter-related and such inter-relationships are well-established.