Predicting future values of random variables
This chapter investigates forecasting, applying a variety of mathematical techniques to predict future values of a random variable. Forecasts provide an integral foundation for organizational planning, as business decisions often rely on the dependable information garnered from these methods. In this chapter, you will explore some of the most common forecasting methods and the means by which to determine the accuracy of their predictions.
This chapter explores several different forecasting methods, including moving average, exponential smoothing, and the regression model that was introduced in Chapter 14. Forecasting accuracy is also measured, using mean absolute deviation and ...