Question

Explain what forecasting is and how forecasting can be utilized for health operations planning.

Provide two examples of forecasting.

Justify your answers with research and reasoning.

Answer 1

Forecasting:

A financial forecast is a fiscal management tool that presents estimated information based on past, current, and projected financial condition. This will help identify future revenue and expenditure trends that may have an immediate or long-term influence on government policies, strategic goals, or community services.

Forecasting is a decision-making tool used by many businesses to help in budgeting, planning, and estimating future growth. In the simplest terms, forecasting is the attempt to predict future outcomes based on past events and management insight.

Financial Research:

There are three basic types—qualitative techniques, time series analysis and projection, and causal models. The first uses qualitative data (expert opinion, for example) and information about special events of the kind already mentioned, and may or may not take the past into consideration.

Reasons for Forecasting:

Forecasting will explain the performance of past, present and future of the business. Forecasting will results into future targets based on the present business.