Question

come up with an example of how you could use forecasting in your job or more generally in your current or future field of work. Which of the techniques of time series analysis and forecasting appears to be the most suitable for your forecast?

Answer 1

The example of forecasting is - Suppose, you have a branded car showroom and a new car is launched. Now, with the past data of the company and other factors such average income individuals spent on cars, how frequently individuals change a car, number of family members, how many individuals drive a car, et cetra.

Now, using all this data and other measuring tools, the future demand of the newly launched car can be estimated. So, this is the forecasting demand using past data.

The forecasting and time series analysis can be done with one of the forecasting model, that is, ARIMA model, an autoregressive integrated moving average model. It projects the future values of a series based entirely on its own interia.