This tends to dictate final decisions. Intended to be regarded as an authoritative statement. A means of removing much of responsibility for the final decision - managers tend to rely on the central forecast. Also see Scenario . Forecasting is the identification of factors and quantification of their effect on an entity, as a basis for planning .
Forecasting is a statistical synthesis of probabilities and expert opinion .
Accounts relevant factors to yield the best answer - what is most likely to happen. This tends to dictate final decisions. Intended to be regarded as an authoritative statement. A means of removing much of responsibility for the final decision - managers tend to rely on the central forecast . Forecasting is important because, by predicting future sales, the company can estimate revenue and therefore plan production and human resources accordingly.