What's the quick distinction among Estimation, Prediction and Forecasting.
First, Estimation Vs Prediction.
Estimation is after occurrence of the event i.e. posterior probability; while Prediction is a kind of estimation before the occurrence of the event i.e. apriori probability.
Estimation implies finding the optimal parameter using historical data whereas prediction uses the data to compute the random value of the unseen data.
Second, what is Forecasting.
Forecasting is a subset of prediction wherein both use the historical data and estimating about the future events. And the difference between forecasting and prediction is the explicit addition of temporal dimension in forecasting.
Forecasting is a time-based prediction i.e. it is more appropriate while dealing with time series data. Prediction, on the other hand, need not be time based only, it can be based on multiple casual factors that influence the target variable.
