Table of contents
Flexibility
Regression forecasting can incorporate multiple variables and thus can model complex relationships between the forecast variable and external predictors.
Interpretability
Regression models provide coefficients for each predictor, allowing for an understanding of how each predictor affects the forecast variable.
Incorporation of domain knowledge
Allows inclusion of external factors and domain knowledge through the choice of predictors, potentially improving forecasting accuracy.
Explanatory power
Helps in explaining trends and patterns by identifying significant predictors and quantifying their impact.
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