Question

What are the potential factors that may affect the forecast accuracy of the time series analysis? Give examples.

Answer 1

The potential factors which affect the forecasting accuracy of time series analysis are

1:- over time: This will impact the time series as over time requirement may enhance the overall productvity and it can produce more number units than usual

2:- economic conditions, :- The economic situations of the region can influcence the time series analysis. This results in either increase in demand when the economic condition are favorable or decline of the same when the economic slow down happens.

3:-regulation changes:- The political situation influences a lot in this case. The regulator changes may impact the import and export which will totally change the time series analysis and prediction on demand forecasting.

4:- Sudden spike or decline in demand: The seasonality situation can change which will impact the estmation of demand.

4:-changes in analyst characteristics.:- Depends on factors of analytical charcteristics nature of output of estimated deand can also change,

Many organization cause demand inaccuracy in forecasting, especially in the current situation of Covid the economic slow down is prevailing which has totally change the dynamics of demand estimation of many products especially automobiles.