What is the difference between forecasting and prediction?
Forecasting and Prediction are two different things.
You always forecast weather, but never predict the weather.
Forecasting is nothing but a extrapolation of the past. You have some historic data, and you plotted it on the co-ordinate and extrapolated it for the future. This is forecasting
Prediction is subjective, it refers to an upcoming event which might or might not happen in the future.
Remember – Any one can do a prediction.
Ex. Sachin will hit a century tomorrow. You predict which might be based on a deep analysis or could just be a simple shot in the dark.
Therefore all the forecasting are prediction but not all the predictions are forecasting.
Exponential Smoothing Forecasting in simple terms
Keep Learning 🙂
The Data Monk