Forecasting methods Essay Example | Topics and Well Written Essays - 250 words

Forecasting methods - Essay ExampleIn a stable data, the forecast for any time period is equivalent to actual value of previous periods. Companies compile data to determine their current values and future tense position in business. Companies like Puma and Nike uses this technique to determine market progress and future gross revenue volume. Communication and transport industries also use this technique to assess their progress (Turchin, 2010).Estimating the average forecast is other techniques used by many organization. The value is calculated by find out forecast error. In determining forecast error, the actual value is subtracted from the predicted value of a time series. Forecast error can be either a calendar forecast or cross sectional forecast error. In calculation of forecast error, an organization can use calculating methods such as root mean square up error, mean percentage error, forecast bias and tracking signal (Kimberly, 2008). Some organization like Emirates Airl ine, double-dyed(a) Atlantic uses this technique. Use of forecast techniques has led to growth of many companies and industries. Each business organization should consider using forecast methods to determine