The Grey Forecasting Modelling and Its Application

Abstract

Grey theory is an effective theory that deals with systems which have imperfect data or weak information. Effective and very accurate estimates can be created for the future by utilizing a small number of data in this theory. The grey modeling method is a sub-branch of the grey systems theory and the modeling process is done by using the related differential equations. The least squares approach plays an important role on accuracy of the results. Using the GM(1,1) modeling method, which is the basis of grey prediction models with its accuracy and usefulness, the tax income to be obtained in the following years are estimated. These estimates are very useful for economic policies, especially for local governments.