Least squares method determines best fit line for data points. Method minimizes sum of residuals from plotted curve. Used by statisticians and traders to identify trends
Traditional spreadsheets are time-consuming and prone to errors. AI tools offer better automation and real-time collaboration. AI can analyze historical data and predict future scenarios
Extrapolation estimates values beyond original observation range based on relationships. Similar to interpolation but with greater uncertainty and risk of meaningless results. Can extend methods or project known experience into new areas
Delphi is a structured communication technique for expert forecasting. Experts answer questionnaires in multiple rounds with anonymous feedback. Panel members revise answers based on others' responses. Process stops when consensus is reached or predefined criteria met
Forecasting predicts future based on past and present data. Prediction is a more general term for forecasting. Risk and uncertainty are central to forecasting. Data must be up to date for accurate forecasts
MSE measures average squared difference between estimated and true values. MSE is always positive due to randomness or lack of information. MSE incorporates both variance and bias of estimator. For unbiased estimators, MSE equals variance