What is a forecast model?
04/13/2023 | By: FDS
A forecasting model is a statistical method or mathematical model based on historical data and trends to predict future events or developments. Such a model can be used to predict, for example, the demand for a product, the future value of a stock, or the outcome of an election or sporting event. Forecast models can be based on various techniques, such as time series analysis, regression analysis, artificial neural networks or decision tree methods. The quality of a forecasting model depends on how accurately it can represent past trends and developments and how well it is able to take into account unexpected events and changes that may affect future developments.