causal forecast

Popular Terms
A forecast based upon the known causal relationship between the variable begin forecast, called the dependent variable, to other internal or external variables, called independent variables. Independent variables cover a wide range of possibilities including sales of a related item, advertising campaigns, local and seasonal influences or certain activities in a specific economic sector. The most common causal forecast is based on a linear regression model in which historical data is used to determine the relationship between the dependent and independent variables.


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