Skip to content

Estimated vs. predicted

You are currently viewing a sample of the Cram Kit. Click here to unlock everything.

With Time Series (Smoothing), the predicted value for a period is simply the previous period's estimated value!

Scenario: Given the yearly Tinder statistics from Delta Apple Pi at Crammer Nation University, determine the predicted value for 2024.

Year201920202021202220232024
Tinder Matches12041329129714321406-
Estimated (y-tilde)--1276.671352.671378.33-
Predicted (y-hat)---1276.671352.67???
Year201920202021202220232024
Tinder Matches12041329129714321406-
Estimated (y-tilde)--1276.671352.671378.33-
Predicted (y-hat)---1276.671352.671378.33

This process holds true for both Simple and Exponential Moving Averages!

With smoothing time series... we can only predict one period into the future!

Activate AutoScroll