Forecasting Forecasting (or prediction) refers to the process of generating future values of a particular event. Business forecasting involves the use of quantitative methods to obtain estimations of future values of a variable (or variables). These quantitative methods include the application of some statistical procedure. A forecast can also be produced by subjective and judgmental methods. These include the "jury of executive opinion" and the Delphi method. I both cases a panel of experts discuss their views to produce a forecast. Examples of forecasts at the firm level, and those related with some aspect of the economy follow: A. Within the firm a. Sales for the next 6 months. b. Levels of inventories for the next 5 weeks. c. Costs and revenues B. The economy a. The level of activity at the state or national levels. For instance, the unemployment rate, or the level of capacity utilization. b. Prices of critical inputs (labor, fuel) c. Interest rates