Sales Prediction With Parametrized Time Series Analysis
When forecasting sales figures, not only the sales history but also the future price of a product will influence the sales quantity. At first sight, multivariate time series seem to be the appropriate model for this task. Nontheless, in real life history is not always repeatable, i.e. in the case of sales history there is only one price for a product at a given time. This complicates the design of a multivariate time series. However, for some seasonal or perishable products the price is rather a function of the expiration date than of the sales history. This additional information can help to design a more accurate and causal time series model.