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Autori principali: Zhang, Bohan, Panagiotelis, Anastasios, Kang, Yanfei
Natura: Preprint
Pubblicazione: 2023
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Accesso online:https://arxiv.org/abs/2305.18809
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author Zhang, Bohan
Panagiotelis, Anastasios
Kang, Yanfei
author_facet Zhang, Bohan
Panagiotelis, Anastasios
Kang, Yanfei
contents This paper presents a formal framework and proposes algorithms to extend forecast reconciliation to discrete-valued data to extend forecast reconciliation to discrete-valued data, including low counts. A novel method is introduced based on recasting the optimisation of scoring rules as an assignment problem, which is solved using quadratic programming. The proposed framework produces coherent joint probabilistic forecasts for count hierarchical time series. Two discrete reconciliation algorithms are also proposed and compared against generalisations of the top-down and bottom-up approaches for count data. Two simulation experiments and two empirical examples are conducted to validate that the proposed reconciliation algorithms improve forecast accuracy. The empirical applications are forecasting criminal offences in Washington D.C. and product unit sales in the M5 dataset. Compared to benchmarks, the proposed framework shows superior performance in both simulations and empirical studies.
format Preprint
id arxiv_https___arxiv_org_abs_2305_18809
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Discrete forecast reconciliation
Zhang, Bohan
Panagiotelis, Anastasios
Kang, Yanfei
Methodology
This paper presents a formal framework and proposes algorithms to extend forecast reconciliation to discrete-valued data to extend forecast reconciliation to discrete-valued data, including low counts. A novel method is introduced based on recasting the optimisation of scoring rules as an assignment problem, which is solved using quadratic programming. The proposed framework produces coherent joint probabilistic forecasts for count hierarchical time series. Two discrete reconciliation algorithms are also proposed and compared against generalisations of the top-down and bottom-up approaches for count data. Two simulation experiments and two empirical examples are conducted to validate that the proposed reconciliation algorithms improve forecast accuracy. The empirical applications are forecasting criminal offences in Washington D.C. and product unit sales in the M5 dataset. Compared to benchmarks, the proposed framework shows superior performance in both simulations and empirical studies.
title Discrete forecast reconciliation
topic Methodology
url https://arxiv.org/abs/2305.18809