Prediction vs Forecast


Explains both prediction and forecast

In the context of data analysis / BI  when is something called as a prediction and when is something called as a forecast?

Quite a lot of people use these terms interchangeably. Dictionary also can't help here, see below.

Prediction vs forecast

Source : https://en.oxforddictionaries.com/definition/prediction


So in the context of data analysis / BI I would say forecast is based on past trends. Time series is involved. Based on previous behavior future behavior is forecasted for a specific time period.  On the other hand prediction may or may not be based on past trends. So all predictions are not forecasts, but all forecasts are predictions. In this way forecast is like a subset of prediction.

Example of a prediction which is a forecast -
No of books that will be sold each month in the next 6 months.

Example of a prediction which is not a forecast -
Country X will win the world cup because they are a good team and in the best form compared to other teams.

What do you think?

Comments

  1. I enjoyed reading your article. Please make more interesting topics like this on.
    I'll come back for more :)

    From Japs a researcher from Always Open Commerce

    ReplyDelete

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