A First Forecast Baseline
Naive and moving-average forecasts.
Always Start Simple
Before fancy models, you need a baseline: a dead-simple forecast that anything fancier must beat to earn its place. 🪜
The Naive Forecast
The simplest baseline is the naive forecast: predict that tomorrow equals today. Surprisingly hard to beat for steady data.
forecast = sales.iloc[-1]All lessons in this course
- Trend, Seasonality, and Noise
- Rolling Windows and Lags
- Stationarity and Differencing
- A First Forecast Baseline