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Essay text:
Planning problems, whether dealing with services or merchandise, can cause any manager headaches easily solved by forecasting. It is important that any manager realizes that the past is a key to the future. Although no long-term plan is perfect, using the correct forecasting tool, along with continual evaluation, allows the manager to review and update corporate financial plans.
Types of forecasting
Forecasting can be classified into four basic types: qualitative, time series analysis, causal relationships, and simulation (Chase, Jacobs, & Aqualino, 2006, p. 513). The purpose of forecasting is to translate experience from the past into an educated guess for the future...
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