What is the difference between forecasting and projection?
Forecasting vs. Projection: Key Difference
Forecasts predict likely future outcomes based on available data and trends. Projections, conversely, illustrate potential outcomes based on assumptions and desired scenarios. Businesses often use them differently – forecasts for planning, projections for "what-if" analysis.
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Whats the difference between forecasting and projection?
Okay, so forecasting versus projection… I always get them mixed up a little, honestly. It’s like, my brain does this weird flip-flop thing.
Projections? That’s more like wishful thinking, right? It’s what you want to happen. Like, on July 12th last year, I projected my Etsy shop would make $5000 that month. Didn’t happen. Reality hit hard.
Forecasting, though? That’s grounded in data. It’s about what’s most likely to occur, based on trends and what you’ve seen before. Like, I forecasted my shop’s sales in August using past data—I came close.
In short: Projections are desired outcomes; forecasts are likely outcomes based on data. It’s a subtle but crucial difference. I learned that the hard way.
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