forecasting theories

Forecasting theories are methods used to predict future events or trends based on data and current information. They rely on analyzing historical patterns, statistical models, and assumptions about how variables relate. For example, businesses forecast sales to plan inventory, while meteorologists predict weather conditions. Different theories emphasize various approaches, like using past data (trend analysis), identifying seasonal patterns, or applying complex algorithms. The goal is to make informed estimates about the future, though uncertainty always exists. Effective forecasting balances data analysis with insights into what might change, helping organizations plan better and make strategic decisions.