The Management Team is all for your efforts to investigate EBBD's forecasting situation. We want you to thoroughly analyze what we are doing, what other forecasting methods and techniques are available, and make a recommendation on how we should proceed. We are particularly interested in how to improve our short term forecasting on an annual, quarterly, and monthly basis.

We also would like to know how we could do longer term forecasting, say over two or three years. And we want to know how we can generate quarterly inflation forecasts.

The Management Team wants to know What are the various methods that we should use? Who will do the forecasting? How will the forecasting methods be implemented?

Why should EBBD spend any money on this new methodology? Why do we care about improving our forecasting and why is it worth the costs to improve it?

The report should provide an initial section on the background of the situation, assumptions that we need to make, discussion of your analysis of various forecasting methods, and then a recommendation with a justification as to why you are making the recommendation. One more thing - the Management Team might want you to make an oral presentation.

So you should also prepare a draft version of a PowerPoint presentation. This does not need to be a finished product, but a draft version. The written report should be comprehensive and articulate. Send me the report and the draft PowerPoint when you have them finished. Let me know if you have any questions along the way.