Demand forecasting is one of the most significant approaches to business and enterprise management. It entails the establishment of a balance between supply and demand that enables an enterprise to produce sufficiently to the needs of its customers. An overestimation of demand is risky because there will be more production for lesser demand (Chase, 2013). Therefore some of the products will not be sold. However, an underestimation will lead to production of too little merchandise that will eventually cause unmet demand and loss of sales. Demand forecasting is quite important for economists because they place emphasis on the forecast for their future plans. A demand curve will give an analysis of the correlation between the price and the quantity demanded (Mukherjee, 2002). The rule of demand states that demand is inversely proportional to price. Higher prices often lead to lower demand.