Question

which combination of forecasting models is likely to lead to the lowest rmse of the combined forecast?

Answer 1

Combination of forecasting models is likely to lead to the lowest rmse of the combined forecast is AR and MA models.

Combining forecasts, from time to time called composite forecasts, refers back to the averaging of unbiased forecasts. These forecasts may be primarily based totally on special statistics or special techniques or both. The averaging is performed the usage of a rule that may be replicated, together with to take a easy common of the forecasts.

The AR element includes regressing the variable on its very own lagged (i.e., past) values. The MA element includes modeling the mistake time period as a linear mixture of mistakess phrases going on contemporaneously and at diverse instances withinside the past.

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