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Lecture 16 PDF
Lecture 16 PDF
Session Outline
Demand Forecasting
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Coincidence indicators:
Series that moves up or down simultaneously with level of economic activities
Lagging Indicators:
Series which move with economic series after a time lag
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Multicolinearity
Autocorrelation
Heteroscedasticity
Specfication of error
Identification problem
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Endogenous variables
Exogenous variables
Structural equations
Definitional equations
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Exogenous variables:
Those that are given from outside the model
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Definitional equations:
Those equations which specify relationships that are considered to be true by
definition
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Past data and events are not always true predictors of future
Change in Fashion
Consumers psychology
Uneconomical
Lack of forecasting experts
Lack of past data for forecasting
Prof. Trupti Mishra, School of Management, IIT Bombay
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Session References
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