Statistical Forecasting in Operations Management Key Terms

Statistical forecasting key terms to advance business growth based on analysis methods

By Heidi Crossman

Reflecting on market trends and patterns in company history will help in business planning and decision making. The results from data analysis allow for successful statistical forecasting and play a big part in how successful businesses are run. For those interested in implementing the technique, these statistical forecasting in operations management key terms will give you an idea as to what is involved in forecasting. Those who are unfamiliar with the process and want to learn the basics quickly can also benefit from these terms.

Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is a special credential that a financial planner can seek out. The credential increases a financial adviser's career opportunities. Statistical forecasting is a large criterion for obtaining the certification and is a common task for financial planners.
Try: The Bureau of Labor Statistics offers information on CFP certification and working as a Certified Financial Planner.

Advanced Certified Financial Planner (ACFP)

An Advanced Certified Financial Planner (ACFP) certification is a higher ranking than a CFP. To be an ACFP, financial advisers must learn about and be tested on their knowledge of forecasting.
Try: Advanced Certified Financial Planner information can be found at the Institute of Business Forecasting & Planning. View some of the benefits of the certification at SlideShare.

Data mining

Data mining is a common technique when forecasting. It is the study of information and extraction of information from data.
Try: An explanation of data mining can be found at Statistical Forecasting. For definitions and more information, read StatServ.

Electronic data exchange (EDI)

The electronic data exchange (EDI) is a method of electronic transfer of information. This automates the information process and creates a fast smooth workflow for gathering forecasting information.
Try: Information on EDI benefits can be found at Sage.

Decomposition analysis

Decomposition analysis is a form of data gathering for analysis and forecasting purposes that bases its results on limited time-based criteria.
Try: Learn about decomposition analysis on Professor Hossein Arsham's website.

Moving average analysis

Moving average analysis is a method of forecasting that looks at past trends in order to come up with study results. Results are based on an average of a select time-based group of data.
Try: See information on moving average analysis and other forecasting methods at Operations Management / Industrial Engineering.