Forecasting models are tools used to predict future events based on historical data. They analyze patterns and trends to provide insights into potential outcomes, helping businesses and organizations make informed decisions. Common types of forecasting models include time series analysis, regression analysis, and exponential smoothing. These models can be applied in various fields, such as finance, economics, and weather prediction. By utilizing statistical techniques, forecasting models aim to reduce uncertainty and improve planning. Accurate forecasts can lead to better resource allocation and strategic initiatives, ultimately enhancing overall performance and efficiency.