Optimally Reconciling Forecasts in a Hierarchy

Rob Hyndman and George Athanasopoulos ()

Foresight: The International Journal of Applied Forecasting, 2014, issue 35, 42-48

Abstract: We know that when forecasting the product hierarchy, reconciliation is invariably needed to make the sum of lower-level forecasts equate to the upperlevel forecasts. The authors argue that the traditional Bottom-Up, Top-Down, and Middle-Out procedures for reconciliation all fail to make best use of the available data. They show we can do better by taking weighted averages of the forecasts from different levels, an approach they call optimal reconciliation. Copyright International Institute of Forecasters, 2014

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://foresight.forecasters.org/shop/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:for:ijafaa:y:2014:i:35:p:42-48

Access Statistics for this article

More articles in Foresight: The International Journal of Applied Forecasting from International Institute of Forecasters Contact information at EDIRC.
Bibliographic data for series maintained by Michael Gilliland ().