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 results. Prediction is a similar but more general term. Forecasting might refer to specific formal statistical methods employing time series, cross-sectional or longitudinal data, or alternatively to less formal judgmental methods or the process of prediction and resolution itself. Usage can vary between areas of application: for example, in hydrology the terms "forecast" and "forecasting" are sometimes reserved for estimates of values at certain specific future times, while the term "prediction" is used for more general estimates, such as the number of times floods will occur over a long period. Risk and uncertainty are central to forecasting and prediction; it is generally considered a good practice to indicate the degree of uncertainty attaching to forecasts. In any case, the data must be up to date in order for the forecast to be as accurate as possible. In some cases the data used to predict the variable of interest is itself forecast. Applications Forecasting has applications in a wide range of fields where estimates of future conditions are useful. Depending on the field, accuracy varies significantly. If the factors that relate to what is being forecast are known and well understood and there is a significant amount of data that can be used, it is likely the final value will be close to the forecast. If this is not the case or if the actual outcome is affected by the forecasts, the reliability of the forecasts can be significantly lower. Climate change and increasing energy prices have led to the use of Egain Forecasting for buildings. This attempts to reduce the energy needed to heat the building, thus reducing the emission of greenhouse gases. Forecasting is used in customer demand planning in everyday business for manufacturing and distribution companies. While the veracity of predictions for actual stock returns are disputed through reference to the efficient-market hypothesis, forecasting of broad economic trends is common. Such analysis is provided by both non-profit groups as well as by for-profit private institutions. Forecasting foreign exchange movements is typically achieved through a combination of chart and fundamental analysis. An essential difference between chart analysis and fundamental economic analysis is that chartists study only the price action