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Forecasting Strategy – Step 1
#1 Is the goal descriptive or
predictive?
#2 What is the forecast horizon?
• DescripHve = Time Series
Analysis
• How far into the future? k in Y t+k
• Rolling forward or at single Hme
point?
• PredicHve = Time Series
ForecasHng
#3 How will the forecast be used?
• Who are the stakeholders?
• Numerical or event forecast?
• Cost of over-predicHon &
under-predicHon
Define
Goal
#4 Forecasting expertise &
automation
• In-house forecasHng or
consultants?
• How many series? How ofen?
• Data & sofware availability
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