Time Series Question 3 | ARIMA | Noon.com Interview question

Question

What is Auto Regression?
Please explain it in the simplest possible way

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TheDataMonk 55 years 1 Answer 751 views Grand Master 0

Answer ( 1 )

  1. Autoregression is a time series model that uses observations from previous time steps as input to a regression equation to predict the value at the next time step.
    Let us understand it simply, it is just like predicting something about a product, based on its earlier progression and sale history. We will tabulate the structure of that product in last week, last month or the last year. There will be some similarities that would be repeating after some regular intervals. If we could capture that pattern, we could generate a much precise assumption for the same.

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