Editing Telecommunications forecasting (section)

==Why is forecasting used?==

Forecasting can be conducted for many purposes, so it is important that the reason for performing the calculation is clearly defined and understood. Some common reasons for forecasting include:<ref name="kennedy" />

*'''Planning and Budgeting''' – Using forecast data can help network planners decide how much equipment to purchase and where to place it to ensure optimum management of traffic loads.
*'''Evaluation''' – Forecasting can help management decide if decisions that have been made will be to the advantage or detriment of the company.
*'''Verification''' – As new forecast data becomes available it is necessary to check whether new forecasts confirm the outcomes predicted by the old forecasts.{{clarify|date=December 2012}}

Knowing the purpose of the forecast will help to answer additional questions such as the following:<ref name="kennedy" />

*What is being forecast? – events, trends, variables, technology
*Level of focus – focus on a single product or a whole line, focus on a single company or the entire industry
*How often is forecasting conducted? – daily, weekly, monthly, annually
*Do the methods used reflect the decisions needed to be taken by management?
*What are the resources available to make decisions? – lead-time, staff, relevant data, budget, etc.
*What are the types of errors that could occur and what will they cost the company?