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Knowing a forecast is bad or unreliable often causes CFOs and treasurers to make overly cautious investment decisions or borrow too frequently and be ambushed by one surprise cash need after another.
A continued drop to 480,000 tons in '01 is forecast before increases begin to take place in '02-03, based on predicted record housing starts spurred by baby boomer investment.
Currently, meteorologists put together their seasonal forecasts mostly on the basis of statistics on past weather, analogies with previous situations, and judgment gained from years of watching weather, says CAC's Rodenhuis.
While most services can forecast for only a limited number of locations on a daily basis, WNI's proprietary global forecast models and Global City Forecast System automate and speed up the forecasting process while continuing to provide accurate forecasts for thousands of locations daily.
Lastly, marketing people may be inclined to be too conservative, figuring they are better off by exceeding the forecast than coming up short.
But when NMC received a second Cyber 205 in 1986, researchers had a rare chance to run some extended forecasts before normal activities took up the new computer's time.