Statistical prediction
Also called: Forecasting · Topic: Economic Data: Census, NSS, Surveys and Statistical Tools · NCERT: Class 11, Ch 1 "Introduction (Statistics for Economics)"
Meaning
Statistical prediction means applying statistical tools to past or survey data to estimate future values. It helps the government and firms plan ahead. Planners cannot wait for the future to arrive, so they build decisions on trends seen in the data.
Example
NCERT gives two cases: deciding in 2017 how much to produce in 2020, and estimating how much oil India should import in 2025. In both, past data on output or demand are used to estimate the future need.
Don't confuse with
- Correlation: correlation measures how two variables move together. Prediction uses such relationships and trends to estimate future values.
Related concepts
- Statistics
- Economic data
- Economic analysis
- Economic policy
- Quantitative data
- Qualitative data
- Statistical methods are no substitute for common sense
- Project report
- Target group