Forecast by analogy is a

forecasting Forecasting is the process of making predictions based on past and present data. Later these can be compared (resolved) against what happens. For example, a company might estimate their revenue in the next year, then compare it against the actual ...

method that assumes that two different kinds of

phenomena A phenomenon ( : phenomena) is an observable event. The term came into its modern philosophical usage through Immanuel Kant, who contrasted it with the noumenon, which ''cannot'' be directly observed. Kant was heavily influenced by Gottfried W ...

share the same model of behaviour. For example, one way to predict the sales of a new product is to choose an existing product which "looks like" the new product in terms of the expected demand pattern for sales of the product. "Used with care, an

analogy Analogy (from Greek ''analogia'', "proportion", from ''ana-'' "upon, according to" lso "against", "anew"+ ''logos'' "ratio" lso "word, speech, reckoning" is a cognitive process of transferring information or meaning from a particular subject ( ...

is a form of scientific model that can be used to analyze and explain the behavior of other phenomena." According to some experts, research has shown that the careful application of analogies improves the accuracy of the forecast.

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