Forecasting - Part I: StatTools
A forecast is a planning tool that uses various methods to build predictions of the future based on past and present data. Businesses use foreacasts for determining how to allocate resources. According to the book Practical Mangement Science by Wayne L. Winston and S. Christian Albright,, forecasting methods can be categorized into three groups: 1) judgemental methods, 2) regression methods, and 3) extrapolation methods. In this blog, I will cover the use of extrapolation to