Improved Forecasting through Feedback

Abstract

Feedback is essential to modern control — we could not get a rocket to the moon without it. And what is useful for the scientific world also holds true for the managerial world. Can techniques of feedback be applied to improved forecasting of costs over the fiscal year, or to improved forecasting of contractual commitments? This article develops the basis for feedback forecasting, as well as the establishment of control limits for determining which forecasts depart significantly from plan.