Why do we need forecasts?
Posted on February 8, 2010 at 3:35 pm by admin
We need forecasts to make better decisions.
Dr. Edward Raupp
Chancellor and Professor of Economics, The University of Georgia
President, THE GEORGIA FORECAST™
When we make decisions, we deal in the realm of uncertainty. The purpose of a forecast, then, is to reduce the amount of that uncertainty. The implicit assumption is that we make better decisions when we know more about the future. In short, Everyone who makes decisions needs forecasts.
THE GEORGIA FORECAST™ (TGF) is an organization and a service. It has three objectives:
1. Predict the values of important macroeconomic variables.
2. Assist organizations in forecasting market conditions.
3. Provide real-world experience for students.
Initially, we will be forecasting Georgia’s real GDP growth rate, unemployment rate, and inflation rate. When we have demonstrated accuracy in forecasting these variables, we will move on to other economic variables.