Combining residuals from regression & time series
The residuals from the two different models that you have developed now need to be combined together! Once they are combined we will have our full forecast. Your residual forecast is stored as for_MET_hi_arima
.
Your regression forecast is saved in the workspace as pred_MET_hi_xts
.
This exercise is part of the course
Forecasting Product Demand in R
Exercise instructions
- Transform the residuals forecast with the exponential function.
- Multiply this new residual forecast to your previous regression forecast (
pred_MET_hi_xts
).
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Convert your residual forecast to the exponential version
for_MET_hi_arima <- ___(___)
# Multiply your forecasts together!
for_MET_hi_final <- ___ * ___