Prediction is the process of making informed guesses about future events based on historical data, patterns, and statistical models. It plays a crucial role in various fields, including finance, weather forecasting, and machine learning. Predictions can be categorized into estimation, which occurs after an event, and forecasting, which explicitly incorporates a temporal dimension to anticipate future occurrences. By leveraging algorithms and domain knowledge, predictions aim to provide insights that guide decision-making and strategic planning. Understanding the principles of prediction can enhance accuracy and reliability, ultimately improving outcomes in both personal and professional contexts.