What is Forecasting Analysis?

Forecasting analysis is the process of making statements about events whose actual outcomes have not yet been observed. A forecasting model is a mathematical representation of a forecasting problem. It is a set of equations that describe the relationships between the variables in the problem. The model can be used to generate a forecast for any value of the dependent variable, given values for the independent variables. Forecasting models can be classified according to the type of data they use or the type of forecasting technique they employ.