Describe a situation where it would be appropriate to use fo

Describe a situation where it would be appropriate to use forecasting. Be sure to include all the necessary steps to develop the forecast and why you would use the forecast you chose. Please be thorough and provide enough detail to allow meaningful responses from your classmates.

Be specific on the 8 step process:

1.      Why are you forecasting?

2.      What are you forecasting?

3.      When are you forecasting to?

4.      How you are going to forecast? What forecasting technique might you use?

5.      How would you gather your data?

6.      What would you use to validate your forecasting model? Would you look at the forecasting errors?

7.      What program would you use to make your forecast (i.e. Excel or Excel QM)?

8.      How will you make use of your forecast? What modifications might you make?

Solution

1) because is the best estimator for a value that we dont know in a regression

2) sales from a year

3) when I need a value that follow a relationship with another value

4)

weighted moving average, linear regression , etc