1) Accuracy of forecasts.
- Determining the degree of accuracy of the forecasts remains the top most consideration among the forecasters.
2) Determine the Forecast Horizon.
- Forecast Horizon is time in the future at which the forecasts are required.
1) Long term forecasts
- Looks at several year of forecast
2) Medium term forecasts
- 6 months until 2 years
3) Short term forecasts
- 1 month until 6 months
4) Immediate term forecasts
- Less than one month
Factors to be considered for successful forecasting practices.
1) TimeFrame
- Refer to Forecast Horizon.
2) Choice of technique
- Technique should be selected so that the underlying assumption matches the characteristics of the data.
3) Cost consideration
- Cost consideration associated with every formulation and development of the forecastin models.
- Example: labour cost, cost of testing computer program.
4) Availability of data
- Long series of data would enable the modeller to obtain accurate and reliable model estimates.
1) Determination of the purpose and objective forecasting exercise
2) Selection of relevant theory
3) Collection of the data
4) Getting to know your data
5) Initial model estimation
6) Model evaluation and revision
7) Initial forecast presentation
8) Final revision
9) Forecast distribution
10) Establish monitoring system
Thanks for your attention.
I hope u all can understand
If have a question can directly contact
My email kudofx97@gmail.com
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