Prototyping - Does it Lowers the Risks in Business?

A prototype is an early sample, model, or release of a product built to test a concept or process or to act as a thing to be replicated or learned from. The potential price level and volume of sales; forecast demand  determines the sales revenue for the firm. Prototyping assist us in the reduction of material wastage, efficient use of human resources and time, and leads to fine product designs. Prototype itself will not provide any information on market , trends, fashion and competitors and thus  this cannot be used to lower all risks associated in the production and selling.