Forecast
- Predicts future events or outcomes by analyzing historical data and trends.
- Used to inform decisions and planning across multiple fields.
- Common applications include finance, weather, and politics.
Definition
Section titled “Definition”Forecasting is the process of making predictions about future events or outcomes based on historical data and trends.
Explanation
Section titled “Explanation”Forecasting uses past observations and identified trends to project what is likely to occur in the future. Practitioners analyze relevant historical data (and, in some domains, current conditions) to produce predictions that support informed decision‑making and planning.
Examples
Section titled “Examples”Finance
Section titled “Finance”Financial analysts use historical data and trends to predict future stock prices and performance. For example, a financial analyst may look at a company’s past quarterly earnings and sales growth to forecast its future performance and potential stock price. This information can then be used by investors to make decisions about whether to buy or sell the company’s stock.
Weather
Section titled “Weather”Meteorologists use historical data and current conditions to predict future weather patterns and events. For example, a meteorologist may use data on wind speed, temperature, and humidity to forecast the likelihood of a hurricane or thunderstorm in a particular area. This information can be used by government officials and emergency managers to plan for potential natural disasters and protect the safety of residents.
Use cases
Section titled “Use cases”- Finance
- Weather
- Politics