Silva, Nohren S.

BSA 1E

Describe forecast based time series data.

Forecast based on time series data is based on the word itself, it’s a forecast
or an assumption that is made annually or even hourly anything with the presence of
time. This is made to assess whether an entity can prosper or generate profit in the
future based from the past events. And those data that the forecaster may acquire
may be measurement of demand, earnings, profits, shipments, accidents, output,
precipitation, productivity, or the consumer price index. Basically, this is a time-
ordered sequence of observations.
For example, when an entity is planning to upgrade their product within this
certain month. So in this, the forecast based time series will enter and do the
assigned work. After of this, the entity will be able to know if there’s a chance to
generate a larger profit or demand based on the forecast.

Differentiate the reactive and proactive approach to forecast how can we apply
it to an organization?
The reactive approach is about dealing the problems that may arise right away
without planning the strategies that will be take. While proactive approach is about
creating a plan before performing a specific action towards the problem. This has the
ability to have vision before acting on it.
The reactive approach is a kind of forecasting that could be risky because the
strategies doesn’t planned well and the organization may act right away. But then, it
shows here the courage of the organization to take the problems right away even
though there’s unpredictable consequence on it. On the other hand, the proactive
approach is kind of forecasting that is play safe because when they foresee a
problems they find ways first before approaching and solving it. However, both of this
approaches are useful in different type of organization, it’s in the hands of the people
on how are they going to execute properly their ways on how they handle the
forecast.