Best Fit Forecast

The Best Fit Forecast technique automatically identifies the most suitable forecasting model by evaluating multiple forecasting techniques and selecting the one with the lowest forecast error (RMSE).

Logic

1. Generate forecasts using all applicable forecasting techniques.
2. Calculate the forecast error (RMSE) for each technique.
3. Compare the RMSE values of all techniques.
4. Select the technique with the lowest RMSE as the Best Fit Forecast.
5. Use the selected technique to generate the final forecast.

Selection Criteria

A forecasting technique is selected as the Best Fit Forecast when it has the lowest RMSE among all evaluated techniques.