Question

What is forecast erro r and how can you account for errors in your forecasting?

Answer 1

Ansaco Forecast covo: The forecasl-6000 Ps the difference between the ahal od deal and the predicted or forecast releef a time series oo any other phenoncnon o- Pleresle. Since forocool coouo 3 dorfuer from the same scale of data, compozisions blw the forecast 29000 Of direrer res can only be made when the sores are on the same Scale Account for como in our forecasting Sources of forecast er our seeking tooedlce como can look pon three places to and towable: + The dala that goes into a forecasting macbel. & The model itself ✓ The context o- the Forecasting exercle. There are several curago cohech dat pooblems can lead to forecast edoor. those are Gross Co2005, Aomalies, Calcedaling predickon Pntervals through podlton tervcel = forecast I Malteplier x Average absoleee eroor te Concept behord prediction potervals play an essential oderna problem related to demand forecasting: Inventory Optimizalfor. 5 vecommendelsors for poachece I see expechalions abocel 20000 2. Track down sources of covor 3. Fuabeeate the corner of altemalte statisticcel metliceeds u. Inves Hgele the use of newdala Socrocos 5- use predstilos Miervals.