Finc600 | Management homework help
250 words agree or disagree to each questions
In his book Keeping Up with the Quants, Thomas Davenport defines forecasting as “the estimation of some variable of interest at some specified future point in time as a function of past data (Davenport & Kim, 2013, p. 4)”. What this entails is that when forecasting something, one makes a prediction based on past data. Our textbook offers future sales or the economic growth rate as examples of forecasting, as a manager can use previously accumulated data to obtain such forecasts (Bell & Zaric, 2012, p. 131).
Our textbook defines prediction as trying to estimate an unknown value, such as someone’s weight (Bell & Zaric, 2012, p. 131). The key distinction between forecasting and prediction, in my opinion, is that prediction is almost a guess, while forecasting is a guess based on data that has been thoroughly analyzed with a model. Forecasting is a form of predictive analytics, which aim to predict the future using data from the past (Davenport & Kim, 2013, p. 3). A manager needs to understand the difference to be able to assess the reliability of the information in front of them. If the manager is facing a prediction, then they know it could be less reliable than a forecast.
I read an online Harvard Business Review article which highlighted the importance of the forecast to the firm, especially when it comes to its strategy. By forcing managers to develop contingency plans, even if what it predicts does not occur, it increases the readiness of the firm to confront potential opportunities and issues (Foley & Khavkin, 2019).
Bell, P.C., & Zaric, G.S. (2012). Analytics for Managers with Excel. Taylor & Francis Group.
Davenport, T.H., & Kim, J. (2013). Keeping Up with the Quants: Your Guide to Understanding and Using Analytics. Harvard Business Review Press.
Foley, C.F., & Khavkin. (2019). How companies should prepare their forecasts. Harvard Business Review. https://hbr.org/2019/04/how-companies-should-prepare-their-forecasts?autocomplete=true
I think this class is challenging and motivational, taking the material I have learn throughout these 3 weeks to further my knowledge in completing this course. Some of the material is favored; however, I have gained a lot from each week learning something different and engaging. The course study that I found most challenging for me would have to be the section on common stocks and bonds. I was not a big fan of excel but pursuing this degree has brought back my past excel experience, and all the various formulas that can be applied. A powerful business tool that organizations can use to make operating the company easier. So, the biggest challenge I face is fearing I want get the formula correct when complete my homework or quiz assignments. Although, the homework assignments has been helpful in practicing and they allow me to understand the quizzes better.
Understanding and explaining common stocks and bonds takes knowing the differences and summary of the differences. I learned a lot about bondholder’s rights. For instance, a company government or other entity is obligated to pay the bondholder, otherwise the entity is considered to be in default. However, for the most part understanding the difference types of bonds, coupon bonds and newspaper bonds to name a couple. Configuring these values in excel can be challenging and time consuming, and one mistake using various formulas will make the entire response incorrect.
Appelbaum, B. (2016, July 28). More Upbeat Fed Hints at Move to Raise Rates. New York
Langager, Chad (2021). How to Start Investing in Stocks: A Beginners Guide.