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Now, the next question we have to address is this who does forecasting and how it is used by entities

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forecasting is performed in nearly every organization that works with quantifiable data.

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For example, retail stores forecast sales.

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They use data of consumers past purchases and try to predict these sales forecasts for coming days.

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This can help them in managing the inventory level of different products, update pricing, et cetera.

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Similarly, energy companies forecast reserves, production, demand and prices.

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Forecasts of reserves are used to determine long term investment plans, whereas demand forecasts are

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used for short term production planning and competitive pricing.

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Government forecasts, tax receipts and spending every year.

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Governments produce the budget based on estimated values of tax, which will be collected in the coming

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year.

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And the plans for the expenditure accordingly.

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Banks and lending institutions forecast new home purchases, and venture capital firms forecast market

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potential to evaluate business plans and not just domestic banks.

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International financial organizations such as World Bank and International Monetary Fund forecast inflation

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and economic activity.

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In agriculture, various government organizations are involved in predicting the weather.

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Demand for several crops.

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Production of several crops, etc..

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Now take a moment and think how other industries such as education, travel, stock market traders,

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etc, are using time to these forecasting.

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I guess you can also imagine how nearly every industry is trying to forecast some variable in the future

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to be better prepared today.

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Now let's see the process in all in forecasting.