Question

Describe some of the uses/purposes of forecasts of the company Scotiabank and its tools/methods that are used to forecast.

Answer 1

Forecasts help in getting a holistic understanding of the current situation of a company. A forecast is an invaluable tool that allows predicting the future of an organization. For example – it predicts marketing forecast, sales forecast, and human resource forecast. Scotiabank is one of the fastest-growing financial organizations in Canada. purposes of forecasts of the company Scotiabank are as follows:

• At the basic level, the forecasting has helped the organization to keep service prices low so that it can conduct business operations smoothly with proper use of cash flow and financial management

• It has helped the bank reducing financial uncertainty

• It has helped the bank in enhancing knowledge about the banking market in Canada

• Forecasting has eased communication between the bank and its customers

Tools that Scotiabank uses to forecast are as follows:

• Straight-line method: Uses for forecasting consistency in growth rate.

• Moving average method: Uses for forecasting repeated forecasts.

• Simpler linear regression method: Uses to compare two different variables out of which one is independent, and one is dependent.

• Multiple linear regression method: Uses for comparing more than one independent variable with a dependent variable.