Forecasting in Managerial Economics
GSM 5000 MANAGERIAL ECONOMICS PROBLEM-BASED LEARNING 2 PROFESSOR DR. MAD NASIR SHAMSUDIN
GROUP 5: AZLINA IDRIS MOHD KHAIRUL AINUDDIN MD ZIN ONG WEE HONG VOO LIDY GM04172 GM04218 GM04213 GM01460
1. Learning Issues 1.1 What is forecasting? Forecasting is the process of making statements about future happenings based on the previous data collected. Forecasting usually is an estimation of the future data, happenings, trends, values, etc for the specified date. A commonplace example is estimation of the expected value for some variable of interest at some specified future data. The forecasting is similar to the prediction, but more general term. However, as the term implies, forecasting is not necessarily precise, thus it’s a good practice to indicate the degree of uncertainty for each forecast. The term forecasting refers to formal statistical methods employing time series, crosssectional or longitudinal data, or alternatively to less formal judgmental methods. There is no single right forecasting method to use. Forecasting is used in the practice of Customer Demand Planning in everyday business forecasting for manufacturing companies. The discipline of demand planning, also some referred to as supply chain forecasting, embraces both statistical forecasting and a consensus process. An important, often ignored aspect of forecasting. The forecasting is the relationship it hold with planning. The forecasting can be described as predicting what the future will look like, whereas planning predicts what the future should look like. 1.2 What are the techniques in forecasting? There are various techniques which can be used to forecasting the demand or supply in the economics fields. The forecasting techniques can divide into two components; Qualitative forecasting techniques and Quantitative forecasting techniques. The qualitative forecasting techniques are generally more subjective than their quantitative counterparts. Quantitative techniques are more useful in the earlier
GROUP 5: AZLINA IDRIS MOHD KHAIRUL AINUDDIN MD ZIN ONG WEE HONG VOO LIDY GM04172 GM04218 GM04213 GM01460
1. Learning Issues 1.1 What is forecasting? Forecasting is the process of making statements about future happenings based on the previous data collected. Forecasting usually is an estimation of the future data, happenings, trends, values, etc for the specified date. A commonplace example is estimation of the expected value for some variable of interest at some specified future data. The forecasting is similar to the prediction, but more general term. However, as the term implies, forecasting is not necessarily precise, thus it’s a good practice to indicate the degree of uncertainty for each forecast. The term forecasting refers to formal statistical methods employing time series, crosssectional or longitudinal data, or alternatively to less formal judgmental methods. There is no single right forecasting method to use. Forecasting is used in the practice of Customer Demand Planning in everyday business forecasting for manufacturing companies. The discipline of demand planning, also some referred to as supply chain forecasting, embraces both statistical forecasting and a consensus process. An important, often ignored aspect of forecasting. The forecasting is the relationship it hold with planning. The forecasting can be described as predicting what the future will look like, whereas planning predicts what the future should look like. 1.2 What are the techniques in forecasting? There are various techniques which can be used to forecasting the demand or supply in the economics fields. The forecasting techniques can divide into two components; Qualitative forecasting techniques and Quantitative forecasting techniques. The qualitative forecasting techniques are generally more subjective than their quantitative counterparts. Quantitative techniques are more useful in the earlier