Category: Forecasting

Forecasting is a term used in economics to mean the estimation of the future state or position of a variable or a set of variables. Forecasting normally comes in handy in times of planning and making decisions for the organization about the variables in question. For instance, it could be used in determining the future…

Executive Summary The analysis of sales data of five products (1-5) offers important information regarding their structure, appropriate models of the forecast, and prediction of demand. The attributes of product 1 indicated that it has a cyclical structure without seasonality and trend. Based on these attributes, SMA and SES were suitable models of forecasting. Product…

Introduction The purpose of this report was to forecast USD/CNH Spot Exchange Rate on July 29 2014. Data for the forecasting were obtained from Bloomberg.com. CNH is the offshore version of the renminbi (RMB). Abilities to comprehend and forecast the exchange rate and fluctuations at any given moments are clearly imperative in critical decision-making processes,…

Table of Contents Introduction A Zero NPV Forecasting Errors Conclusion Reference Introduction The decision-making process regarding future investments should be based on theoretical frameworks to avoid failure. They include forecasting errors indicating the difference between expected and actual outcomes alongside the net present value (NPV), which should be positive for accepting the projects. Therefore, this…

In forecasting, error measures play important roles because of their potential in helping to identify the forecasting method that would be the most appropriate in a given context. Each error measure can have certain limitations and thus lead to the inaccurate evaluation of forecasting results, which contributes to the increased complexity of choosing appropriate error…

Table of Contents Introduction Exponential Smoothing Forecasting Calculation Alternative Calculation Method Operations Planning Planning Systems Reflection References Introduction When it comes to any business operations, a long-term strategy and predictions play a significant role in the business’s success. Forecasting, for its past, has become an integral part of the business strategy and tactics. The procedure…

Time value of money (TVM) is a valuable instrument that helps comprehend the value of a currency in relation to a given period. It is a method frequently applied by investors to understand how the current worth of money compares to that of the future. The time value of money would significantly impact the decision…

Australia and New Zealand are neighboring countries with highly intertwined economies and cultures. Australia, which has a larger and more industrialized economy, utilizes the Australian dollar (AUD), while New Zealand with an advanced market economy utilizes the New Zealand dollar (NZD), informally known as Kiwi. The two countries maintain a free trade agreement. Australia is…

Forecasting is the estimation of the value of a variable (or set of variables) at some point in time in the future. Typically, the purpose of predictive calculations in an enterprise is to provide information to the planning process. Forecasting proceeds from the assumption that if a company can at least approximately predict the future,…

This paper seeks to examine historical sales revenue data to establish a forecast for 2005 and 2006. The historical data exhibit quarterly seasonality, which will be verified by plotting a scatter diagram of sales revenue against time. This scatter diagram, otherwise called a time series plot, further demonstrates the trend. The trend will be estimated…