TYPES OF FORECAST

There are three types of forecasts, which many business organizations rely on are:

(i) Demand (Sales) forecast.

(ii) Economic forecast and

(iii) Technological forecast.

Demand or sales forecasts are fundamental to a company’s planning and control decisions. They give the expected level of demand for the company’s products or services through some future periods. 

Economic forecasts involve such matters as future state of the economy; inflation rates etc., and have a profound influence on the success of future business activities.

Technological forecasts usually focus on the rate of technological progress or the nature of technological developments in areas related to the business and technology.