What are some common forecasting errors to avoid?

What are some common forecasting errors to avoid?

Common forecasting errors include overfitting, underfitting, ignoring seasonality, and not validating models.

Can you explain overfitting and why it's a problem?

Overfitting occurs when a model learns the noise in the training data instead of the actual trend, leading to poor predictions.

How can I avoid underfitting in my models?

To avoid underfitting, ensure your model is complex enough to capture the underlying patterns in the data.

What role does seasonality play in forecasting?

Seasonality can significantly impact forecasts; failing to account for it can lead to inaccurate predictions.