Inductive Reasoning is the type of reasoning in which a pattern is observed and is then

used to make an educated guess, or generalization, about the data.

Reasoning from specific to general.

This generalization is called a conjecture.

If the same result occurs over and over again, we may conclude that it will always occur.
This is inductive reasoning.

When we use inductive reasoning, we cannot be certain that the conclusion is always
true.
The conclusion in an inductive argument is never guaranteed.
For example look at the next number in the sequence 6, 13, 20, 27,…
There is more than one correct answer.
Look at the difference of each term.
13 – 6 = 7, 20 – 13 = 7, 27 – 20 = 7
Thus the next term is 34, because 34 – 27 = 7.
However what if the sequence represents the dates. Then the next number could be 3 (31
days in a month).
The next number could be 4 (30 day month)

Business relies heavily on inductive reasoning, which assumes a uniformity of nature,

such that the future is assumed to resemble the past. This, of course, is problematic,
especially when considering the complexity involved in adequately factoring in the
effects of customers, competitors, employees, environmental and climatic hazards, war,
new technology, and so forth, into useful quantitative formulae. It is impossible to bind
all of the variables for making probabilistic judgments on many of the most important
business problems with a high degree of confidence. For this reason (among
others)...because of the number of variables and the sheer unpredictability of
outcomes...there is a rather considerable risk of failure in business; conversely, there
would seem to be a rather high degree of luck in achieving success, or putting it in the
vernacular, being at the right place at the right time. This relates to the simple fact that
business knowledge is highly tentative, and subject to error or obsolescence.