Forecasting is the use of historic data to establish the direction of future trends to help management in its attempts to cope with the uncertainty of the future. Forecasting is used by businesses to decide how to allocate their budgets for an upcoming period of time. This is usually based on demand for the goods and services the business provides, compared to the cost of producing them. In addition, investors utilize forecasting to determine if events affecting a company, such as sales expectations, will increase or decrease the price of shares in that company. Forecasting also provides an important benchmark for the business which has a long-term perspective of operations. Many assumptions must be included in these estimates, but this process can help both traditional businesses and eBusinesses become more resilient by allowing preparation for some of the more probable business environment situations that could arise.