Predictive Analytics in Business
The ARIMA model, which stands for AutoRegressive Integrated Moving Average, is a popular statistical method used for time series forecasting. This model is essential for understanding and predicting future values based on past data, particularly in scenarios where trends and seasonal patterns exist. It combines the concepts of autoregression, differencing to achieve stationarity, and moving averages, making it an effective tool for demand forecasting and inventory optimization.
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