The Demand Prediction Problem
Let's continue then by exploring a demand prediction problem and how it can be treated as a time series analysis problem.
Demand prediction is a task related to the need to make estimates about the future. We all agree that knowing what lies ahead in the future makes life much easier. This is true for life events as well as, for example, the prices of washing machines and refrigerators, or demand for electrical energy in an entire city. Knowing how many bottles of olive oil customers will want tomorrow or next week allows for better restocking plans in retail stores. Knowing of a likely increase in the demand for gas or diesel allows a trucking company to better plan its finances. There are countless examples where this kind of knowledge of the future can be of help.
Demand Prediction
Demand prediction, or demand forecasting, is a big branch of data science. Its goal is to make estimations about future demand using historical data and possibly...