BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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prediction of future values of a time series
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quantitative method used when historical data on the variable of interest are either unavailable or not applicable
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set of observations on a variable measured at successive points in time
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outcome of a random experiment
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Detailed explanation-1: -Forecast is defined as a prediction of future values of a time series. C. A time series is a sequence of observations on a variable measured at successive points in time or over successive periods of time.
Detailed explanation-2: -Time series forecasting is the process of analyzing time series data using statistics and modeling to make predictions and inform strategic decision-making.
Detailed explanation-3: -Forecasting is the process of making predictions based on past and present data. Later these can be compared (resolved) against what happens. For example, a company might estimate their revenue in the next year, then compare it against the actual results. Prediction is a similar but more general term.
Detailed explanation-4: -Forecasting involves making predictions about the future. In finance, forecasting is used by companies to estimate earnings or other data for subsequent periods. Traders and analysts use forecasts in valuation models, to time trades, and to identify trends. Forecasts are often predicated on historical data.
Detailed explanation-5: -When predicting a time series, we typically use previous values of the series to predict a future value. Because we use these previous values, it’s useful to plot the correlation of the y vector (the volume of traffic on bike paths in a given week) with previous y vector values.