Steps for Forecasting Process

Steps for Forecasting Process:

1. Determine the objective of the forecast.(What is its use?)
2. Select the period over which the forecast will be made. (What are your information needs over what time period?)
3. Select the forecasting approach you will use. (Which forecasting techniques is most likely to produce the information you need?)
4. Gather the information to be used in the forecast. (Which data will most likely produce forecasts of greatest use to you?)
5. Make the forecast. (Which computational procedures will you have to use?)

Types of Forecast:

1. Judgmental Forecast. (DELPHI Technique)
2. Extensions of Past History. (Time Series Methods)
3. Causal Forecasting Models.