ABSTRACT
This chapter goes beyond the basic concepts learned in Chapter 4 and uses them on practical applications. In this chapter, we learn two important concepts: estimation and prediction. As we will see, they are both interrelated. Estimation is the science of calibrating an equation that provides a representation of the real world containing only those elements deemed important given their capability to capture the phenomena being modelled. Prediction is the art of forecasting future states or values of a phenomenon. This typically has the purpose of making decisions to change the future. Prediction typically uses calibrated systems (estimation) along with some additional factors.
