Forecasting is a Technique in Which Current and Historical Data

Forecasting is a Technique in Which Current and Historical Data
Forecasting can be defined as the action of predicting a future event or trend. In business organizations, forecasting is a technique in which current and historical data is used to map the organization's future projection, direction, or trends. This technique allows managers and leaders to plan for potential future outcomes based on what data or statistics say within the organization, the industry, and the company's market (Wi'sniewski, 2021). Examples of items involved in forecasting include cash flow, revenue, potential future expenses, and losses and profits, among others. Typically, forecasting is done to determine future budget allocations or plan for anticipated events. Thus, forecasting is supposed to improve organizational processes and strategic decisions.
One example in which forecasting improves strategic decisions is the s...