BUSI 2603U Lecture Notes - Lecture 2: Standard Deviation, Linear Regression, Dependent And Independent Variables
24 Jan 2017
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Demand for products and services is usually uncertain. Fore(cid:272)asti(cid:374)g (cid:272)a(cid:374) (cid:271)e used for : strategic planning (long range planning, finance and accounting (budgets and cost controls, marketing (future sales, new products, production and operations. Forecasts are more accurate for groups or families of items. Forecasts are more accurate for shorter time periods. Every forecast should include an error estimate. Decide what needs to be forecast: level of detail, units of analysis and time horizon required. Select and test the forecasting model: cost, ease of use and accuracy. Key issues in forecasting: a forecast is only good as the information included in the forecast (past data, history is not a perfect predictor of the future (i. e. there is no such thing as a perfect forecast) On week 2 slides finishing the practice questions. Prepare for week 3 quiz on forecasting (jan 24th) Forecasting is based on the assumption that the past predicts the future.
