Forecasting Geographic Data
Michael Leonard and Renee Samy, International Symposium on Forecasting, 1998.
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Virtually all businesses collect and use data that are associated with geographic locations, whether it is sales, customer demand, or profits at different locations. Geographic Information Systems (GIS) provide a means for visualizing and analyzing such data. Collecting each region’s time series into a vector time series forms a geographic time series. Multivariate modeling techniques can then be used to model correlation between geographic regions to improve forecast accuracy. This paper provides a practical demonstration of using a VAR model restricted by an adjacency matrix to forecast and visualize a geographic time series using SAS software. In particular, Base SAS software is used to manage and query the data and generate the adjacency matrix. SAS/ETS software is used to model the VAR process and forecast the geographic time series. SAS/GIS software is used to map the geographic regions, select the regions to analyze, and visualize the forecasts. SAS/GRAPH software is used to plot the time series data. SAS/AF software is used to develop the interactive interface.