Estimation vs Prediction Vs Forecast I already read the q/a's from here and here. These answers are quite a bit complicated for me. I need something easy to understand and explain to any interviewer. I read lots of articles like;
What is the difference between estimation, extrapolation, prediction, and forecasting?
Prediction vs Forecasting
What is an Estimate
and lots more...
What I got from these articles in a nutshell is:
Estimation
What: It approximates the result based upon historical understanding and experience.
When do we need to estimate: If we don’t have data to support an exact result, then in such case we do a rough estimation.
where do we use: Financial transaction, Estimating the cost of the item which has a price tag of “$10 + Vat”, Estimating the number of people who could attend the party, Estimate current time without looking to the watch and so on.
Prediction
What: It gives output close to the actual answer based upon past data but ignores certain conditions.
When do we need to predict: To have a sense of control
Where do we use: Fraud detection, Content recommendation, Health diagnosis, House price prediction, and so on
Forecast
What: It gives output closest to the actual answer that may possibly happen in the future. It is also a type of prediction. It predicts what will happen in the future by taking into consideration events in the past and present both
When do we need to forecast: To predict the possible future with high accuracy.
Where do we use: Business Planning, Budgeting, Investing money in any business wisely, Weather forecasting, and so on
I tried to explain them very easily but still, I feel like most of the explanation is vague. Could anyone help me to make my explanation easy, clear, and correct?

They do have similar meanings. Actually they are used interchangeably sometimes.

