Mathematics · Time Series & Forecasting
Which of the following conditions are necessary for forecasts obtained from time series analysis to be reliable?
- 1The data sample must contain no random or irregular fluctuations
- 2The time series data must strictly show a linear upward trend
- 3The fitted model must accurately reflect past data and the underlying pattern must continue into the future✓
- 4The trend must not change direction and seasonal variation must be eliminated
Correct answer
The fitted model must accurately reflect past data and the underlying pattern must continue into the future
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