Forecasting (also called prediction) refers to the process of analyzing historical data and trends to predict future events or trends. These predictions can be made in a variety of ways, including statistical models, machine learning algorithms, and expert knowledge.
Forecasting is widely used in companies to make decisions about future business strategies, investments and resource allocation. Examples of applications of forecasting include demand forecasting, sales forecasting, budget forecasting, and staffing requirements forecasting.
There are different techniques of forecasting that focus on different aspects. Some common methods are time series analysis, regression analysis, and decision tree analysis. Each of these methods has its own advantages and disadvantages and may be suitable differently depending on the situation.