Forecasting Techniques..docx - Surname 1 Name Instructor\u2019s Name Course Date Forecasting Techniques The decision-making tool which many companies

Forecasting Techniques..docx - Surname 1 Name...

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Surname 1 Name Instructor’s Name Course Date Forecasting Techniques The decision-making tool, which many companies employ in estimating their future growth, is known as forecasting (Collier and James 210). It involves predicting future outcomes by management insight and past events. The tool applies to planning, budgeting, predicting business trends, sales performance as well as cash flow. The classification of forecasting methods is broadly into qualitative and quantitative. The techniques used in qualitative forecasting emanate from the instincts of experienced professionals in the appropriate field to generate forecasts. As such, they are not mere guesses; they combine expert knowledge acquired in the course of the several years on the job with analysis of existing data (Collier and James 211). On the other hand, quantitative forecasting employs historical data. Such historical information includes previous figures of revenue and sales, reports on finance and production as well as statistics of website traffic.
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