Question

Explain the process of forecasting and consider all the factors that contribute to the accuracy of forecasting

Answer 1

Forecasting is the process of making predictions of the future based on past and present data and most commonly by analysis of trends. A commonplace example might be estimation of some variable of interest at some specified future date. Prediction is a similar, but more general term.Based on prior research, it is hypothesized that three primary factors drive changes in aggregate forecast accuracy over time: economic conditions, regulation changes and changes in analyst characteristics.