Previous Page | Next Page

Forecasting Process Details

Adjustments

Adjustment predictors are subtracted from the response time series prior to model parameter estimation, evaluation, and forecasting. After the predictions of the adjusted response time series are obtained from the forecasting model, the adjustments are added back to produce the forecasts.

If is the response time series and , are m adjustment predictor series, then the adjusted response series is

     

Parameter estimation for the model is performed by using the adjusted response time series . The forecasts of are adjusted to obtain the forecasts of .

     

Missing values in an adjustment series are ignored in these computations.

Previous Page | Next Page | Top of Page