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Pros and Cons of the ARIMA Model Over Regression | Anamind

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ARIMA is a powerful time series technique, find the pros and cons of the ARIMA model over regression. Learn more

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Pros and Cons of the ARIMA Model Over Regression | Anamind

  1. 1. FAQs: Pros and Cons of the ARIMA Model Over Regression Part - 2 Powerful Planning! Simplified
  2. 2. What are the pros and cons of the ARIMA model over regression? ARIMA is a powerful time series technique in which a series own history is used as an explanatory variable and hence the term 'auto regressive'. Regression on the other hand uses external factors (independent) as an explanatory variable for the dependent value.
  3. 3. ARIMA forecasts are usually more accurate and reliable. ARIMA is a univariate model (working with one variable only) and hence cannot exploit the leading indicators or explanatory variables. If these variables are important, then a multivariate model such as dynamic regression is the better choice.
  4. 4. “A man who does not plan long ahead will find trouble at his door.” - Confucius, Chinese philosopher
  5. 5. For better understanding of ARIMA model over regression, you may enroll for our training Check the next slide >>
  6. 6. Thank You Enroll for Business Planning and Forecasting training at: http://bit.ly/understanding-arima Use the above link redeem and get the best price.

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