Question

Explain the difference between inference and assumption? Provide concrete examples of both concepts.

Answer 1

Assumption is some conditions which we think to be true and develop a model. For example, we might assume that demand for a product is constant and develop a model for optimal order policy,optimal stocking policy etc.

Inferences are the statements which are derived from the results of the studies or models or actual situations. For example, we have the data of the sales data for the entire country for the entire product range. From this data, one can infer which products are selling well, in which regions is the company doing well, etc